US | Clearer signs of a cooling labor market emerge in April...

Summary

In the first quarter of 2024, job creation remained strong, but overall employment growth has slowed compared to last year. April saw only 175 thousand new jobs added, well below the expected 243 thousand.

Key points

• Key points:
• Year-on-year employment growth slowed to 1.8%, compared to 4.9% in April 2021, falling about 200K below last year's pace.
• Private sector employment, mainly in health care and social assistance, drove most of the variation in April's employment figures.
• The unemployment rate increased to 3.9% in April, which confirms the cooling trend of the labor market, a level very close to the long-term rate of 4.1%.
• Expectedly, hourly wage growth has slowed, averaging 0.2% monthly from February to April, reducing the annual rate to 3.9% from 4.1%.
• Softening demand and slowing job creation may disrupt the improving balance in the labor market, potentially leading to higher unemployment levels.

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