WASHINGTON–Job growth has finally showed the signs of a slowdown the Federal Reserve has been seeking, with unemployment ticking higher in April after a 2024 that until the most recent report had been surprising analysts with strong monthly numbers.
The Labor Department reported that U.S. employers added a seasonally adjusted 175,000 jobs in April. That falls below the numbers seen in March, when gains exceeded 300,000.
"The Bureau of Labor Statistics April jobs report was generally favorable: job gains softened with 175,000 jobs added in the month. The U.S. unemployment rate rose modestly – from 3.8% in March to 3.9% at the end of April – remaining in the narrow range of 3.7% to 3.9% reported over the past nine months,” said America's Credit Unions Chief Economist Mike Schenk. "The average workweek for all employees on private nonfarm payrolls edged down by 0.1 hour to 34.3 hours in April – exactly equal to the year-ago reading. Historically, flat or declining year-over-year changes in the average workweek have been a reliable leading indicator of recession.
What About Rate Cuts?
"The Federal Reserve on Wednesday emphasized that market interest rates won’t be cut until policymakers have ‘greater confidence’ that inflation is slowing sustainably to its desired 2% target,” Schenk continued. “Today’s employment report suggests job market fundamentals could be headed in a direction that is broadly supportive of achieving that goal."
The new report shows also rose less than anticipated, increasing 3.9% from a year earlier after rising 4.1% in March.