US Employers Add 175,000 Jobs in April
In April, employers in the United States added 175,000 jobs, indicating a slight slowdown in hiring momentum, yet maintaining resilience amidst ongoing economic challenges.
This figure marks a decline from March’s notable increase of 315,000 jobs. Economists had anticipated a higher gain of 233,000 jobs for April.
Excel Magazine International observes that the moderation in hiring pace, coupled with a deceleration in wage growth, may signal a response to persistently high interest rates aimed at curbing elevated inflation levels.
Hourly wages rose by 0.2% from March and 3.9% from a year earlier, reflecting the smallest annual gain since June 2021.
The Federal Reserve, committed to combating inflation, has refrained from considering interest rate cuts until assured of a sustained downward trend in inflation.
Rate cuts could potentially alleviate borrowing costs for consumers and businesses, including mortgages and auto loans.
Following the release of the jobs report, stock futures surged on speculation that rate cuts might become more probable in the near future.
Despite the April slowdown, job growth remains substantial, albeit marking the lowest monthly increase since October. With household spending remaining steady, many employers have continued to hire to meet demand.
The unemployment rate saw a slight uptick to 3.9%, maintaining a streak below 4% for the 27th consecutive month, the longest since the 1960s.
Key sectors driving April’s job growth included health care, which added 56,000 jobs, followed by warehouse and transportation companies with 22,000, and retailers with 20,000.
