- Nonfarm payrolls rose by 175K in April, less than the 243K expected and a slower pace than the 315K notched in March (revised from 303K), the U.S. Department of Labor said on Friday.
- The unemployment rate, meanwhile, edged up to 3.9% vs. 3.8% expected and 3.8% prior.
- Wage pressures appear to be easing, according to the report. Average hourly earnings increased 0.2% M/M, less than the +0.3% expected and a smaller increase than 0.3% increase in March. That translates to a 3.9% Y/Y rise, lower than the 4.0% increases expected and 4.1% growth in the prior month.
- The labor force participation rate held at 62.7% in April, in line with expectations.
- The reduced level of hiring and cooler wage growth indicate that the labor market is softening from a very tight level. That may give the Federal Reserve the confidence to ease interest rates later this year.
- The biggest job gains were in health care (+56K), social assistance (31K), and in transportation and warehousing (+22K), the U.S. Department of Labor said.
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