Despite a drop in GDP in the first quarter, employment growth in the United States surged more than predicted in April, highlighting the economy’s strong fundamentals.
The Labor Department reported in its carefully awaited employment report on Friday that nonfarm payrolls increased by 428,000 jobs last month. The number of jobs added in March was lowered down to 428,000 from 431,000 earlier reported.
Payrolls were expected to rise by 391,000 jobs, according to economists polled by Reuters. The number of people estimated ranged from 188,000 to 517,000. At 3.6 percent, the jobless rate remained constant.
‘It’s unclear whether higher job growth would prompt the Fed to be concerned or relieved,’ said Lou Crandall, chief economist at Wrightson ICAP in Jersey City.
‘Stronger growth that reflects individuals’ willingness to return to work would tend to lower labour costs, whereas growth spurred by higher salary offers from firms squeezed by labour shortages would have the reverse impact.’
The Federal Reserve is attempting to tighten monetary policy in order to reduce inflation while avoiding a recession.
Post Your Comments