Jobs Report: Job Growth Less Than Expected

May 3, 2024

This report is not too hot, not too cold and it’s just what the Fed wants to see. We’re not seeing a pickup in wages, we’re still producing jobs and the economy is doing well.

Chief market economist at Spartan Capital Securities, Peter Cardillo, regarding the April jobs report.

Why It Matters: The U.S. economy added 175,000 jobs in April – fewer than expected – while the unemployment rate slightly rose, going against analysts expectations it would stay the same. The report indicates an economy responding to the Federal Reserve’s decision to maintain high interest rates, which remain at a 23-year high. Senior economist at consulting firm EY-Parthenon, Lydia Boussour, explains, “We’ve seen a significant easing in labor demand, and it’s not a surprise that hiring is also slowing down in this economic environment where interest rates are still elevated.” How exactly this report influences the Fed’s decision moving forward about when to cut interest rates remains to be determined.

Read More: U.S. job growth totaled 175,000 in April, much less than expected, while unemployment rose to 3.9% (CNBC)

by Emily Hooker, based in Texas