US jobs report for April will likely point to a slower but still-strong pace of hiring

Published: 03 May 2024 at 06:09

Finance & Economics

The American economy likely delivered another solid hiring gain in April, showing continuing durability in the face of the highest interest rates in two decades WASHINGTON -- The American economy likely delivered another solid hiring gain in April, showing continuing durability in the face of the highest interest rates in two decades. The Labor Department is expected to report Friday that employers added a healthy 233,000 jobs last month, down from a sizzling 303,000 in March but still a decidedly healthy total, according to a survey of forecasters by the data firm FactSet. The unemployment rate is forecast to stay at 3.8%. That would make it the 27th straight month with a jobless rate below 4% the longest such streak since the 1960s.

DEEP DIVE

Fewer Americans Apply for Unemployment Benefits Despite Higher Interest Rates

The Labor Department reported a decrease in unemployment claims, with 207,000 applications compared to 212,000 the previous week. The Federal Reserve's 11 rate hikes aimed to curb inflation did not lead to expected layoffs or a recession. Companies outside tech and media, like UPS and Macys, announced job cuts. Despite this, U.S. employers added 303,000 jobs recently, and the unemployment rate dropped to 3.8%, staying below 4% for 26 months. Around 1.78 million Americans received jobless benefits, 15,000 less than the previous week.

Weak US productivity could threaten Fed's 'soft landing' hopes

By Howard Schneider WASHINGTON (Reuters) - Weaker U.S. productivity gains in the first quarter may challenge the Federal Reserve's efforts to finish its inflation fight without a painful rise in unemployment, potentially stalling progress on prices absent a further economic slowdown. A jump last year in how much workers produce helped the economy grow fast and hiring remain strong while inflation fell nonetheless. Data for the first three months of 2024, however, showed worker productivity rose at a 0.

Federal Reserve's Actions and Big Banks' Financial Results This Week

The Labor Department is set to release its March report on consumer prices with analysts expecting a 3.4% rise in inflation. The Federal Reserve will present the minutes from its recent interest rate policy meeting, maintaining the benchmark rate unchanged and planning potential rate cuts in 2024. Big banking institutions such as JPMorgan Chase, Citigroup, and Wells Fargo will disclose their quarterly financial results giving insight into consumer health and credit activities.