Signage during a job fair at Brunswick Community College in Bolivia, North Carolina, United States, Thursday, April 11, 2024.
Allison Joyce | Bloomberg | Getty Images
The U.S. economy created fewer jobs than expected in April while the unemployment rate rose, reversing a trend of strong job growth that had kept the Federal Reserve cautious as it awaited signals on the when it could begin to reduce interest rates.
Nonfarm payrolls increased by 175,000 for the month, below the Dow Jones consensus estimate of 240,000. The unemployment rate increased to 3.9% while it was hoped it would remain at 3.8%.
The average hourly wage rose 0.2% from the previous month and 3.9% from a year ago, both lower than consensus estimates and an encouraging sign for inflation.
The unemployment rate is tied for the highest level since January 2022. A broader rate including discouraged workers and those in part-time employment for economic reasons also increased slightly, to 7.4%, its highest level. high since November 2021. The activity rate, or those actively looking for work, remained unchanged at 62.7%.
Consistent with recent trends, health care led job creation, with an increase of 56,000.
Other sectors showing significant increases include social assistance (31,000), transportation and warehousing (22,000) and retail (20,000). Construction added 9,000 positions while government, which had posted strong gains in recent months, increased by only 8,000 after an average of 55,000 over the previous 12 months.
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