US labor market exceeds forecasts with 175,000 new jobs

May 3, 2024 Vaseline stjohnson 0

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The United States added 175,000 jobs in April, well below expectations and the smallest increase in six months, as the labor market cools in the world’s largest economy.

Friday’s last-month nonfarm payrolls figure compared with forecasts for a 241,000 increase in a Bloomberg survey, raising expectations that the Federal Reserve could cut interest rates sooner than previously thought. .

The release comes after the US central bank signaled on Wednesday that interest rates would remain at a 23-year high of 5.25 to 5.5 percent for even longer than expected, while struggles with persistent inflation.

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Futures market traders responded to the data by bringing forward expectations for when the Federal Reserve’s first interest rate cut could occur this year: to September, from November before the data. The futures market already fully takes into account two cuts this year.

The two-year Treasury yield, which moves with interest rate expectations, fell 0.1 percentage point to 4.77 percent. S&P 500 futures rose on expectations of looser monetary policy.

U.S. unemployment rose slightly to 3.9 percent, compared with estimates of 3.8 percent. Friday’s figures also represented the slowest pace of monthly job growth since October 2023.

Revisions to February and March data showed 22,000 fewer jobs were created than previously reported.

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This is a developing story.