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US NFP Surges 288K, Unemployment Rate Dips to 6.3%

The US Non-Farm Payroll for April showed 288K jobs added to the economy in the month. This is the highest reading since January 2012. The March reading was revised up from 192K to 203K. Economists had a median forecast of about 216K for April and the 288K reading beat most economists' forecasts that ranged from 155K to 292K according to Bloomberg.

The unemployment rate fell to 6.3%, which is the lowest since September 2008, and continues what appears to be a good trend.

However, as we have come to expect, the dip in unemployment rate is a result of a decline in labor force participation rate, which fell from 63.2% to 62.8%, the lowest level since 1978 as you can see by the graph below.

Labor Force Participation since 1970

(source: Bureau of Labor Statistics)