U.S. labor market slows in April, adding 175,000 jobs
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The U.S. economy added 175,000 jobs in April, while the unemployment rate ticked up to 3.9% from 3.8%, the Labor Department said on Friday.
Why it matters: Jobs growth slowed from the prior month's hot pace, but the data suggests that the labor market is still chugging along with healthy demand for workers.
- The pace of hiring was notably slower than economists' estimate of 240,000 jobs in April.
- Job gains in March were slightly better than previously thought, upwardly revised to 315,000 from 303,000—though payrolls in February were revised lower by 34,000 to 236,000.
Driving the news: The lower-than-expected job gains were concentrated in health care, social assistance, transportation and warehousing
- Average hourly earnings, a measure of wage growth, rose 0.2%.
- Over the past 12 months, average hourly earnings increased 3.9%.
State of play: Friday's data is the latest evidence that the labor market is holding steady — an important development for the broader economy.
- The Federal Reserve this week kept interest rates at the highest level in more than two decades.
- Its policymakers suggested that any rate cuts would happen later than previously thought due to stalled progress on curbing inflation.
- Fed chair Jerome Powell this week said that the central bank would be "prepared to respond to an unexpected weakening in the labor market."
Go deeper: Signs of lingering inflation: Worker pay pressures persist
Editor's note: This story was updated with a new chart and additional context.
