2024-05-03 20:30:14
US job creation slowed more than expected in April, and the annual pace of wage growth is cooling. As such, it is probably too early to expect the Federal Reserve Board to begin cutting key interest rates before September as the labor market remains under pressure, Reuters reported.
Jobs in the nonfarm sector of the US economy increased by 175,000 last month, the Bureau of Labor Statistics said in a report released today. At the same time, data for March have been revised upwards and report an increase in jobs by 315,000 instead of the previously announced 303,000, BTA reported.
Experts polled by Reuters had forecast an increase of 243,000 jobs, although estimates ranged between 150,000 and 280,000.
The unemployment rate rose to 3.9 percent from 3.8 percent in March, but still held below the 4 percent mark for the 27th consecutive month.
Remuneration rose 3.9 percent in the 12 months to April, after rising 4.1 percent in March. Wage growth in the range of 3.0-3.5 percent is seen as consistent with the IMF’s inflation target of 2 percent.
Earlier this week, the US central bank left its benchmark overnight rate unchanged in the 5.25-5.50 percent range it has maintained since July.
Financial markets continue to expect the central bank to begin its easing cycle in September after raising its key interest rate by 525 basis points from March 2022.