April Jobs Report Confirms only 160,000 Jobs
On jobs Friday, the market was disappointed with only 160,000 jobs created.
The general consensus was just shy of 200,000 leaving hopeful employees 37,000 jobs short this last month.
This is the weakest gain since September. The unemployment rate held steady at 5% according to the government.
Through the first three months of the year The Labor Department report steady growth averaging 209,000 jobs added, on average, per month. Those odds are standing regardless of the economic growth which leaves policy makers questioning which of those is better to measure to see healthiness of US Market.
Wells Fargo chief economist Sam Bullard still believes the economy is moving at at moderate rate and suggest the report is offsetting.
“I would not to say totally dismiss the report, but the labor market is stronger than that 160,000 figure would suggest,” says Bullard. He points to the big jump in hiring in the business and “white collar” jobs in April. It wasn’t just low-paying retail jobs on the rise.
From the workers
Workers are frustrated that their pay isn’t going up very fasy. April actually saw a decent rise in wages growing by 2.5%. While the 3-3.5% is typical in a healthy US economy the 2.5% growth has workers feeling uneasy. This slowdown in work means there’s very little hope the Fed will raise interest rates next meeting in June.
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“These disappointing numbers greatly reduce the likelihood of the Fed hiking rates this side of the presidential election,” says Chris Williamson, chief economist at Markit.