US hiring unexpectedly picks up pace, unemployment down
Analysts originally expected hiring to ease to the slowest pace in over two years.
Job seekers speak with recruiters during a job fair at Navy Pier on April 11, 2023 in Chicago, Illinois. Companies at the fair were seeking mostly seasonal employees to work in tourism related fields. The U.S. unemployment rate currently stands at 3.5%. (Photo by Scott Olson/Getty Images/AFP)
Hiring in the United States picked up pace in April and the unemployment rate inched down, according to government data released Friday, defying expectations of a slowdown despite higher interest rates.
The latest figures show that the labor market remains strong despite banking sector upheaval, higher borrowing costs and uncertainty surrounding a potential government default.
The world’s biggest economy added 253,000 jobs last month, up from a revised 165,000 number in March, while the jobless rate ticked down to 3.4 percent, said the Labor Department.
“Employment continued to trend up in professional and business services, health care, leisure and hospitality, and social assistance,” the department said in a statement.
Average hourly earnings rose 0.5 percent to $33.36, data showed, and compared with a year ago, the figure is up 4.4 percent.
To rein in stubborn inflation, the Federal Reserve has lifted the benchmark lending rate ten consecutive times since early 2022 – with higher lending costs making it pricier to borrow funds for big-ticket purchases or business expansion.
Analysts originally expected hiring to ease to the slowest pace in over two years, closely eyeing the job market for signs that the economy is cooling enough for the central bank to pause its cycle of rate increases.
