US jobs growth maintained robust momentum in April, despite employers grappling with a historically tight labour market, underscoring the strength of the economy.
US non-farm payrolls grew 428,000 in April, according to data released by the Bureau of Labor Statistics on Friday, matching the revised 428,000 increase in March.
That kept the jobless rate steady at 3.6 per cent, just shy of the level it stood at in February 2020 before the pandemic began spreading across the US for the first time.
While job creation has been exceedingly strong across the US economy over the past year, and the unemployment rate has fallen much more rapidly than expected by most policymakers, the hot labour market coupled with high inflation is raising concerns for the Biden administration and the Federal Reserve.
Wages have shot higher as employers have been forced to compete for talent. Average hourly earnings in April climbed another 0.3 per cent, for an annual increase of 5.5 per cent.
This week, the US central bank raised its main interest rate half a percentage point for the first time since 2000 — to a target range of between 0.75 per cent and 1 per cent — in an effort to more rapidly cool the economy and stamp out high prices.
“Labour demand is very strong, and while labour force participation has increased somewhat, labour supply remains subdued,” said Fed chair Jay Powell during his post-meeting press conference. “Employers are having difficulties filling job openings, and wages are rising at the fastest pace in many years.”
In April, the share of Americans either employed or looking for work, as measured by the labour force participation rate, registered little progress and remained below its pre-pandemic level. It ticked 0.2 percentage points lower to 62.2 per cent.
President Joe Biden will travel to Cincinnati, Ohio on Friday to tout the strength of the recovery under his watch, particularly in the manufacturing sector in a state that is disproportionately linked to America’s industrial base.
The White House has noted 473,000 of the more than 6mn jobs created since Biden took office were in the manufacturing sector, which is now approaching pre-pandemic levels of employment.
But job vacancy rates are at extremely high levels, and many employers are struggling to fill positions, causing hardship for small businesses in particular and contributing to higher wages and prices.
A record 4.5mn US workers quit the labour force in March, while the number of job openings hit a high of 11.5mn, government data released earlier this week showed. Both figures were the highest since the US labour department began collecting the data in December 2000.
Source: Economy - ft.com
