U.S. Job Growth Disappoints in April, Unemployment Ticks Up to 3.9%

In April, U.S. job growth fell short of expectations with only 175,000 jobs added, compared to the forecasted 240,000, while the unemployment rate rose to 3.9%, marking a deviation from the recent trend of robust employment gains. This shift could influence the Federal Reserve’s strategy on interest rate adjustments. Additionally, average hourly earnings increased by only 0.2% month-over-month and 3.9% year-over-year, figures that were also below expectations, suggesting subdued inflationary pressures. The broader labor market indicators, such as the more comprehensive unemployment rate and labor force participation, also reflected some softening, with the former reaching its highest level since November 2021 at 7.4%.