Wednesday, March 29, 2023

US economy added 4,28,000 jobs in April, beating forecasts

US employers added 428,000 jobs in April, extending a streak of solid hiring that has punished inflation, chronic supply shortages, the Russian war against Ukraine and much higher borrowing costs.

Friday’s jobs report from the Labor Department showed that last month’s hiring put the unemployment rate at 3.6%, well above the lowest level in half a century.

Hiring the economy has been remarkably consistent to withstand the worst inflation in four decades.

Employers have added at least 400,000 jobs for 12 consecutive months.

Yet it is not clear how long the jobs boom will continue.

Unemployment Rate
Friday’s jobs report showed that last month’s hiring put the unemployment rate at 3.6%.
US Department of Labor

The Federal Reserve this week raised its key rate by half a percentage point – its most aggressive move since 2000 – and signaled major rate hikes to come.

As the Fed’s rate hikes take effect, they will make it more expensive for consumers and businesses to borrow, spend, and rent.

In addition, the huge financial assistance supplied by the government to the households has come to an end.

And Russia’s invasion of Ukraine has helped accelerate inflation and tarnished the economic outlook. Some economists have warned of an increased risk of recession.

The Latest Jobs Report Shows Unemployment At 3.6% - Just Above The Lowest Level In 50 Years.
The latest jobs report shows unemployment at 3.6% – just above the lowest level in 50 years.
Getty Images

Mark Hamrick, a senior analyst at Bankrate, told The Post, “There’s no getting away from the fact that the payroll numbers could be higher and perhaps significantly higher, if employers are more successful in finding the workers they want. are.” ,

“In other cycles, moderation on payroll growth will be seen as a sign of weak demand. Like many things, the pandemic has turned the world upside down.”

Hamrick said the 428,000 jobs added “are in line with expectations.”

“The gauge of labor force participation, or those working or looking for work, remains below pre-pandemic levels, depriving employers of candidates from filling jobs,” he said.

The Strong Job Numbers Came Just Days After The Fed Raised Its Key Rate By Half A Percentage Point.
The strong job numbers came just days after the Fed raised its key rate by half a percentage point.
Getty Images

John Lynch, chief investment officer at Comerica Wealth Management in Charlotte, said in a cautiously optimistic tone that the jobs report could be a sign of “reducing inflation fears.”

“Today’s report is balanced and may prove to mitigate the extreme volatility of recent days,” he said.

“We’re still not out of the woods, yet a clearing is visible.”

post with wires


Nation World News Desk
Nation World News Desk
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