WASHINGTON—The latest jobs report – with 263,000 jobs gained in April – reveals strong job growth and keeps the Federal Reserve on track to not raise interest rates any time soon–and also doesn’t come as any surprise to credit unions looking to find good people, as one recent meeting made clear.
In looking at the numbers themselves, NAFCU Chief Economist and Vice President of Research Curt Long, said, “As has been the case throughout the expansion, the labor market once again proves to be a bastion of support for the economy. The April report brought strong job growth and lower unemployment. Wage growth is comfortably above inflation, and the fact that it failed to tick up serves to stifle any talk of a rate hike. The Fed is in a good spot right now, as the warning signs of a recession have abated, but without any fear of economic overheating."
The unemployment rate fell to 3.6% in April – its lowest level since 1969 – while the labor force participation rate fell from 63% to 62.8%.
In other report data, private-sector payroll employment increased 236,000 jobs during April. The goods-producing sector increased 34,000 jobs, while the service sector increased 202,000 jobs. Public sector employment grew 27,000 from the prior month, Long said.
Average hourly earnings increased 6 cents to $27.77 in April, following March's 4-cent increase. Over the last 12 months, wages are up 3.2%, Long noted.
Hot Topic at Meeting
Meanwhile, during NAFCU’s CEOs and Senior Executives Conference which was taking place the same day the jobs numbers were released, a poll of attendees found staffing issues being identified as the number-one issue CUs face. More can be found here.