Current:Home > reviewsEmployers added 175,000 jobs in April, marking a slowdown in hiring -Ascend Finance Compass
Employers added 175,000 jobs in April, marking a slowdown in hiring
View
Date:2025-04-12 13:06:40
Hiring across the U.S. slowed in April, a sign the Federal Reserve's efforts to shackle economic growth and curb inflation is chilling the labor market.
American employers added 175,000 jobs last month, well below expectations of roughly 232,000 and off dramatically from the blockbuster job creation in March, when employers added a surprising and upwardly revised 315,000 jobs.
The nation's unemployment rate was little changed at 3.9%, continuing a 27-month stretch of remaining below 4%, the longest since the 1960s, the U.S. Department of Labor said Friday.
The smallest increase in payrolls in six months allayed concerns that an overly hot economy would prevent the Federal Reserve from cutting interest rates later this year.
Wall Street applauded the report, with stocks sharply higher and bond yields falling.
In the wake of the data, interest-rate futures showed a slightly larger chance of a cut in July, albeit still under 50%. The probability of a September rate cut increased to about 75% from 60% on Thursday, according to CME Group.
What it means for a Fed rate cut
Some analysts stressed that one report does not in itself represent a trend, and that the Fed would need to see further evidence that inflation is under control before reducing borrowing costs.
"The report does not change our call for the Federal Reserve to wait until September before cutting interest rates. The labor market is still healthy, and the Fed needs to see several months of benign inflation data before lowering rates," Nancy Vanden Houten, lead U.S. economist at Oxford Economics.
Art Hogan, chief market strategist at B. Riley Wealth, said there is more good news than bad in the report.
"Coming into today's print, the three-month average was 260,000, now it's 230,000," said Hogan. "Today's 175,000, while below expectations, is actually a terrific number as you average things out over the last three months."
In addition to payrolls, data on wages and hours also came in weaker than expected.
"The silver lining to today's weaker-than-expected nonfarm payrolls number is it likely takes some pressure off the annualized increase in wages," said Hogan, noting that annualized wage growth has slowed to 4.3%, from 5.1% earlier this year. "Wages are still going up, but not at such a pace from keeping the Fed from ever finding a reason to cut interest rates."
"A slowdown in payrolls to a decent pace to start the second quarter, coupled with a slowing in wage gains, will be welcome news to policymakers, who think the current policy stance is restrictive and will weigh on demand, economic activity and inflation over time," Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said in a report.
"Current readings also support the view that rate cuts — and not hikes — are the base-case scenario for the Fed this year," Farooqi added.
Surprisingly strong economic growth and stubbornly high inflation have pushed back the Fed's timeline for nudging down borrowing costs for consumers and businesses.
The central bank said Wednesday it was holding its benchmark interest rate at a two-decade high of roughly 5.3%, with Fed Chair Jerome Powell acknowledging that inflation is receding more slowly than policymakers expected. Starting in March of 2022, the Fed raised its short-term rate 11 times in trying to restrain surging inflation as the economy rebounded from the pandemic.
Although many economists expected the campaign to tighten monetary policy to tip the U.S. into recession this year, robust job gains, healthy consumer spending and strong corporate profits have kept the economy chugging.
- In:
- Employment
Kate Gibson is a reporter for CBS MoneyWatch in New York.
veryGood! (882)
Related
- Apple iOS 18.2: What to know about top features, including Genmoji, AI updates
- Madonna Poses With All 6 Kids in Rare Family Photo From Italian Birthday Bash
- Kirsten Dunst recites 'Bring It On' cheer in surprise appearance at movie screening: Watch
- John Aprea, 'The Godfather Part II' and 'Full House' actor, dies at 83
- South Korea's acting president moves to reassure allies, calm markets after Yoon impeachment
- The Latest: Preparations underway for night 1 of the DNC in Chicago
- Phil Donahue, whose pioneering daytime talk show launched an indelible television genre, has died
- Powell may use Jackson Hole speech to hint at how fast and how far the Fed could cut rates
- Krispy Kreme offers a free dozen Grinch green doughnuts: When to get the deal
- Authors sue Claude AI chatbot creator Anthropic for copyright infringement
Ranking
- All That You Wanted to Know About She’s All That
- What time is the 'Love Island USA' Season 6 reunion? Cast, where to watch and stream
- Wisconsin woman who argued she legally killed sex trafficker gets 11 years in prison
- What is the most expensive dog? This breed is the costliest
- Bodycam footage shows high
- Louisiana is investigating a gas pipeline explosion that killed a man
- Hurry! J.Crew Factory's Best Deals End Tonight: 40-60% Off Everything, Plus an Extra 60% Off Clearance
- What happens when our Tesla Model Y's cameras can't see? Nothing good.
Recommendation
Sarah J. Maas books explained: How to read 'ACOTAR,' 'Throne of Glass' in order.
As viewers ask 'Why is Emily in Paris only 5 episodes?' creator teases 'unexpected' Part 2
The Bachelor’s Madison Prewett Is Pregnant, Expecting First Baby With Husband Grant Troutt
Little League World Series: Live updates from Monday games
The Daily Money: Spending more on holiday travel?
Powerball winning numbers for August 17 drawing: Jackpot rises to $35 million
Pat McAfee says Aug. 19 will be the last WWE Monday Night Raw he calls 'for a while'
Body cam video shows fatal Fort Lee police shooting unfolded in seconds