The US labour market was tighter in April than economists had expected. Employers hired more people than in the previous month, while experts expected a decrease in new jobs. In addition, unemployment remained low, while a slight increase was planned.
253,000 new jobs were added in the United States last month, far more than economists had generally expected. As a result, 3.4 percent of the working population was unemployed, the US government reported. The expectation was an increase of 3.6 percent. Hourly wages rose by an average of 4.4 percent in one year.
The Bureau of Labor Statistics adjusted the figures for February and March. At that time, the increase in the number of jobs was much less than the statistics office of the US Department of Labor initially reported.
Based on the new data, the labour market appears to remain strong, while other signs point to a deteriorating economy. For example, US gross domestic product (GDP) rose much less rapidly in the first quarter than in the previous three months. Interest rate hikes also make it much more expensive for companies to borrow money for investments. In addition, the collapse of several medium-sized US banks caused unrest in the financial sector, which could have repercussions on the economy.
The job numbers are also significant for the Federal Reserve’s interest rate policy. Now that the labour market remains tight, this may be a reason for the central bank umbrella to continue raising interest rates slightly longer to combat high inflation.