- U.S. Creates 164,000 Jobs in April; Jobless Rate Improves to 3.9%
Employers in the U.S created 164,000 jobs in the month of April, up from an upwardly revised 135,000 in March, initially reported as 103,000, the Labor Department reported on Friday.
The unemployment rate improved from 4.1 percent to 3.9 percent, the lowest since December 2000. However, wage growth rose slightly by 0.1 percent in the month and 2.6 percent from a year ago. Both lower than projection.
Again, despite the less than expected wage growth reading, the unemployment rate declined below the Federal Reserve officials’ estimates. Adding to Fed’s stance that continuous job creation will further support wage growth and consumer prices.
The labor market remained strong and continued to support the consumer spending that will further be aided by tax cuts, and with companies hungry for desirable workers, the labor market is likely to stay solid.
“We believe the U.S. labor market remains on solid footing,” Sam Bullard, senior economist at Wells Fargo Securities, said in a note before the report. “That said, as labor market conditions continue to tighten and the pool of skilled workers on the sidelines continue to shrink, future monthly hiring gains are likely to slow from the current hiring pace.”
The report also reflected private employment of 168,000, lower than the median estimate of 190,000. Another indication that job creation is nearing a more sustainable level.