On Friday, the Bureau of Labor Statistics released data showing that US job growth slowed significantly in April, with only 175,000 positions added. This is the lowest number of job gains since October of last year. The Federal Reserve has been trying to curb demand to control inflation, which has led to a gradual slowdown in the labor market.
Despite economists predicting a decline in the labor market due to high interest rates, April’s numbers are consistent with pre-pandemic levels and the neutral rate of job growth needed to keep up with population growth. The unemployment rate also increased slightly to 3.9%.
This marks the 27th consecutive month that the jobless rate has remained below 4%, matching a streak last seen in the late 1960s. Economists had expected 235,000 jobs to be added in April and for the jobless rate to remain at 3.8%, according to FactSet consensus estimates. This is a developing story and will be updated as more information becomes available.
