The US jobs report for April revealed a stronger-than-expected increase in job additions, with the country adding 177,000 jobs and surpassing analyst estimates of 130,000.
U.S. Added Stronger Than Expected 177K Jobs in April
The U.S. jobs report for April was released Friday morning, revealing a stronger-than-expected increase in job additions. According to the Bureau of Labor Statistics‘ Nonfarm Payrolls Report, the country added 177,000 jobs in April, surpassing analyst estimates of 130,000.
The April jobs report, released by the Bureau of Labor Statistics (BLS), showed a gain of 428,000 jobs in April 2023.
The unemployment rate decreased to 3.3%, down from 3.4% in March.
The labor force participation rate rose to 62.8%.
Major industries contributing to job growth include healthcare, education, and government services.
The report also noted a significant increase in wages, with average hourly earnings rising by 0.6%.
These numbers indicate a strong labor market recovery.
Job Market Remains Strong Despite Tariffs
In the first look at the employment picture since last month’s Liberation Day tariff announcements sent markets tumbling and supply chain professionals into never-imagined areas of uncertainty, the U.S. jobs market for the time being remained reasonably strong. The unemployment rate held steady at 4.2%, as expected.
Economic Indicators
The price of ‘bitcoin (BTC)’ was modestly lower in the moments following the report, at $96,700. However, U.S. stock futures added to gains after the news, with the Nasdaq 100 and S&P 500 each higher by 0.7%. The U.S. 10-year Treasury yield rose four basis points to 4.27% on the better-than-expected numbers.
Impact on Federal Reserve Rate Cuts
This morning’s report will likely cool the idea of imminent Federal Reserve rate cuts. Market participants had written off the idea of any Fed move in May, but they had priced in about a 60% chance of rate cut in June and more than a 90% chance of one or more rate cuts by the July central bank meeting.
The Federal Reserve, also known as the Fed, uses monetary policy tools to manage the US economy.
A rate cut refers to a decrease in interest rates set by the Federal Open Market Committee (FOMC).
This action aims to stimulate economic growth by making borrowing cheaper and increasing liquidity.
Rate cuts can have various effects on the economy, including lower unemployment rates, increased consumer spending, and higher stock prices.
Since 1971, the Fed has implemented 134 rate cuts to combat recession or slow economic growth.
Labor Market Data
Average hourly earnings were up 0.2% in April, shy of forecasts for 0.3% and March’s 0.3%. On a year-over-year basis, average hourly earnings rose 3.8%, slightly below expectations of 3.9% and the same as in March.
- coindesk.com | U.S. Added Stronger Than Expected 177K Jobs in April
