June 6, 2023

Dubai Week

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The US job market is growing faster than expected, and unemployment has fallen to 3.4%.

Employment data misses recessionary expectations

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U.S. employment accelerated in April while the unemployment rate fell, contrary to expectations of a slowdown due to higher interest rates, according to government data released Friday.

The world’s largest economy added 253,000 jobs last month, up from expectations of 165,000 jobs in March, while the unemployment rate fell to 3.4%, the Labor Ministry said “AFP”.

“Employment in professional and business services, health care, entertainment, hospitality and social assistance continued its upward trend,” the ministry said in a statement.

Aiming to control inflation, the Federal Reserve has raised the key interest rate 10 times in a row since early 2022, pushing up borrowing costs.

Average hourly earnings rose 0.5% in April after rising 0.3% in March, and wages rose 4.4% year over year in April after rising 4.3% in March.

The unemployment rate fell to 3.4% in April from 3.5% in March.

Analysts had expected employment to fall at its slowest pace in more than two years and were watching the labor market closely for signs that the economy might recover enough for the central bank to stop raising interest rates.

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