Home ETFs April Jobs Report Shows Solid 428,000 Gain, Slowing Wage Growth

April Jobs Report Shows Solid 428,000 Gain, Slowing Wage Growth

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April Jobs Report Shows Solid 428,000 Gain, Slowing Wage Growth

Updated at 8:45AM ET

The U.S. economy added slightly more jobs than expected last month, the Labor Department said on Friday, while slowing wage growth suggested the Federal Reserve’s efforts to stabilize the labor market by raising interest rates are beginning to bear fruit.

The U.S. Bureau of Labor Statistics said 428,000 jobs were added in April, and the overall unemployment rate remained at a post-pandemic low of 3.6%. The April figure was slightly higher than Wall Street’s consensus forecast of 395,000.

The BLS also lowered its March payroll increase to 428,000 from an initial estimate of 431,000. The February total was also revised down to 714,000 from 750.00.

Wages rose 0.3% this month and 5.5% year over year to $31.75 an hour, the BLS noted, a figure that could ease concerns about the pace of wage inflation and its long-term impact on so-called second-round inflation on food and energy prices Soaring impact. Analysts had expected a sequential growth of about 0.4%

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U.S. stock futures pared earlier losses after the data, with contracts tied to the Dow Jones Industrial Average showing a 20-point drop at the open, while contracts tied to the S&P 500 were priced in a modest 5-point drop.

The yield on the benchmark 10-year U.S. Treasury note rose to 3.067%, while the dollar index hit a fresh 20-year high of 104.04 in overnight trade, rising to 103.409.

However, the data overshadowed one of the most complex labor markets in U.S. history, characterized by a record job turnover rate in March, with about 11.55 million jobs still vacant in the world’s largest economy.

Those numbers seem difficult to reconcile with the fact that about 93% of jobs lost during Covid have been recovered, suggesting a recent slowdown in hiring later in the year.Or, as demonstrated by companies like Amazon (AMZN) – Get Amazon.com, Inc. ReportsTarget (TGT) – Get Target Company Report and Starbucks (SBUX) – Get the Starbucks Corporation ReportSignificant wage increases needed to temporarily re-enter the workforce

“Wages are going up, they’re the highest they’ve been in quite a while. They’re a good example — or, really, a good example of how tight the labor market really is and wages are at their highest level. Facts for decades,” Fed Chairman Jerome Powell told reporters in Washington earlier this week, after the central bank raised rates by 50 basis points, the most in 22 years.

“We believe that through our policies, through a further recovery in the labor market … supply and demand will rebalance, so wage inflation will moderate,” he added. “I would say I think we’ve had a good chance of a soft landing or a soft landing or an outcome.”

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