The US economy added 177,000 jobs in April, ahead of consensus of 130,000 and the Unemployment rate came in at 4.2% in April, unchanged from March
Average Hourly Earnings rose 0.2% month-on-month.
Isaac Stell, Investment Manager at Wealth Club said,ย โFor the second month in a row the US jobs market showed far more resilience than had been expected, with a strong headline figure of 177,000 jobs created despite the tariff turmoil unleashed during April.
“Economists had been expecting a sharper fall in the number of jobs created following the decline in business confidence and the DOGE continuing its job cutting mission. However, robust hiring in the healthcare, transport and warehousing sectors ensured the pain wasnโt as severe as expected.
“The headline figures are also yet to reflect the full extent of the federal job cuts as those on paid leave or receiving ongoing severance pay still count as employed. Revisions to these latest figures are likely as has been seen with the March and February numbers.
Markets have taken the latest jobs report as a bullish signal with equity futures rising on the news. However, this perhaps indicates that markets are emotional beasts and trade on sentiment rather than reality. GDP in the US surprisingly contracted in the first quarter falling by 0.3% and business confidence continues to slide. A jobs reckoning maybe on the way and it would be unwise to let the short-term news instill undue confidence.โ
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