The U.S. Bureau of Labor Statistics (BLS) released its latest jobs report on Friday, revealing a minor increase in the unemployment rate and a hiring slowdown. In April, employers added 175,000 new jobs, falling short of both the past year’s monthly average of 242,000 and the 235,000 jobs analysts had forecasted.
The unemployment rate inched up from 3.8% in March to 3.9% in April.
Significant job gains were observed in health care, with 56,000 new positions, social assistance with 31,000, and transportation and warehousing with 22,000. Other sectors, such as construction and government, experienced modest job increases, while electronics and appliance retailers saw a decrease of 3,000 jobs.
Hires and Sluggish Wage Growth
Bloomberg pointed out that this overall job increase is the smallest reported by the BLS in six months, potentially indicating a slowdown in the growth of the service sector. However, the BLS downplayed these fluctuations, emphasizing that the unemployment rate has remained between 3.7% and 3.9% over the past nine months.
In terms of salary, employees saw a slight increase in average hourly earnings of seven cents in April, marking a 0.2% rise, with the average hourly wage reaching $34.75. The average workweek also slightly decreased by 0.1 hours to 34.3 hours. Bloomberg reported that this represents the slowest wage growth rate since June 2021.
Despite the tepid jobs report, the stock market surged on Friday, possibly because the unemployment rate remained relatively low.
April’s jobs report indicates a cooling job market with fewer hires and slower wage growth. Despite these signs of moderation, the unemployment rate remains relatively stable, and the stock market’s positive response suggests cautious optimism among investors. As we move forward, monitoring these trends will be crucial for understanding the broader economic outlook.
Key Takeaways:
- Average hourly wages are growing at the slowest rate since June 2021, as reported by Bloomberg.
- Job additions were below analysts’ expectations.
- The U.S. Bureau of Labor Statistics (BLS) released the April jobs report.
- The unemployment rate increased to 3.9% in April.
