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US Employers Scaled Back Hiring in April. How That Could Let the Fed Cut Interest Rates

The April jobs report showed a decent increase of 175,000 jobs, indicating a slight pullback in hiring compared to March's blockbuster numbers. The moderation in hiring, along with a slowdown in wage growth, may be welcomed by the Federal Reserve as it grapples with persistently high inflation. Click here for article.

  • April's hiring gain of 175,000 jobs was down from March's 315,000, but still solid.

  • Wage growth slowed, with hourly wages rising only 0.2% from March and 3.9% from a year earlier, the smallest annual gain since June 2021.

  • The moderation in hiring and wage growth could signal a potential shift in the Fed's interest rate policy, with rate cuts becoming more likely to combat inflation.

  • Despite the slowdown, the job market remains robust, with healthcare leading job gains in April.

  • Government hiring was weak, particularly at the local level, reflecting a recent slump in state and local government revenue.

  • Temporary help jobs fell, which could be an indicator of future job market trends.

  • The overall labor force participation rate remained unchanged at 62.7%, below pre-pandemic levels.

  • Inflation remains persistently above the Fed's 2% target, despite efforts to cool it down.

  • Some industries are still facing challenges in finding skilled workers, leading to wage increases and a focus on flexibility in work arrangements.



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