US economy adds 175K jobs in April, much weaker than expected
Invesco global market strategist Brian Levitt discusses the economy's rate of growth and the rate of inflation on 'Barron's Roundtable.'
U.S. job growth slowed notably in April while the unemployment rate unexpectedly rose, a sign that high interest rates and stubborn inflation are starting to weigh on the labor market.
Employers added 175,000 jobs in April, the Labor Department said in its monthly payroll report released Friday, missingthe 243,000 gain forecast by LSEG economists. It marked the worst month for job creation since October. The unemployment rate, meanwhile, inched higher to 3.9% against expectations that it would hold steady at 3.8%.
Wage growth was also more subdued last month, with average hourly earnings — a key measure of inflation — rising 0.2%, less than expected. On an annual basis, wages increased 3.9% in April.
«The spring flowers may have been blooming in April, but the labor market showed modest signs of wilting,» said Jason Pride, chief of investment strategy and research at Glenmede.
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The surprisingly weak report paints a picture of a job market that is beginning to sputter as the result of the Federal Reserve's aggressive interest-rate hike campaign, and boosts the odds of rate cuts sooner rather than later. Wall Street welcomed the news, with all three major stock indices soaring in premarket trading Friday morning.
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«Following a steady stream of sticky inflation data in recent months, today’s much-weaker-than-expected jobs report had to bring smiles to the faces of the Fed board,» said Chris Larkin, managing director, trading and investing
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