US jobs growth recovery witnessed in April

While the US jobs observed a phase of slumber for the past several months, US jobs growth staged a bigger recovery than expected in April as businesses added 211,000 posts.

As per the figures from the US Department of Labor showed the unemployment rate dropped slightly to 4.4%, compared with 4.5% in March.

This rebound in the jobs market could pave the way for the US central bank to raise interest rates in June.

The economy is having to create 75,000 to 100,000 jobs a month to keep pace with growth in the working-age population.

An unemployment rate of anything under 5% is considered to indicate full employment. The rate of 4.4% is the lowest since May 2007, as per the records.

This rise in employment was driven by the leisure and hospitality sectors, health care and social assistance, financial activities and mining.

According to the reports average hourly earnings rose by 2.5% year-on-year, although this was down slightly on March’s figure.

Kully Samra, UK managing director at Charles Schwab., stated in a statement that the jobs figures represented a strong bounce-back following the disappointing figures recorded in March, when only 79,000 jobs were created. He said, “With the Fed is hitting the pause button in May, the recovery in today’s employment data gives weight to the prospect of a further rate hike in June and the possibility of two or three more this year.”

As per the recent GDP figures, the US economy grew at an annual rate of 0.7% in the first three months of this year, the slowest rate since the first quarter of 2014, raising concerns that the economy could be weakening.