U.S. jobs post smallest gain in 6 months as unemployment rises
BNN Bloomberg
U.S. employers scaled back hiring in April and the unemployment rate unexpectedly rose, suggesting some cooling is underway in the labour market after a strong start to the year.
Nonfarm payrolls advanced 175,000 last month, the smallest gain in six months, a Bureau of Labor Statistics report showed Friday. The unemployment rate ticked up to 3.9 per cent and wage gains slowed.
Friday’s report signaled further evidence that demand for workers is moderating, but the data likely don’t amount to “an unexpected weakening” that U.S. Federal Reserve Chair Jerome Powell said would warrant a policy response.
Powell, who spoke Wednesday after the central bank held interest rates steady for a sixth straight meeting, noted that wage growth probably needs to “move down incrementally” for policymakers to meet their inflation objective. Friday’s report showed some movement in that direction after a slew of releases earlier in the week suggested wage pressures continue to bite.
