USA: job growth better – unemployment rate surprisingly dropped

The US Department of Labor has just submitted employment figures for April. Job growth was much stronger than expected, wage growth was slightly weaker on a monthly basis, and the unemployment rate dropped surprisingly to 3.6 percent, with the labor force participation rate falling. Monthly figures (job growth) were slightly down. The average weekly working hours have dropped (could affect productivity).

The number of non-farm payrolls increased by 263,000 compared to the previous month, the US Department of Labor said Friday in Washington. Economists interviewed by Investing.com had expected an average increase of 181,000.

Negative were the revisions to the previous month. In March, the number of new employees dropped from 196,000 to 189,000.

Government offices were created 27,000, while in manufacturing only 4,000 new jobs were added (10,000 expected), after a fall of 6,000 in the previous month.

Meanwhile, average hourly wages have risen unchanged by 3.2% over the year, while the monthly increase was 0.2% (+0.3% expected). The previous month has been raised from 0.1 to 0.2 percent. Rising wages usually lead to inflation and can therefore burden the profitability of companies.

Experts surveyed by Investing.com anticipated 3.8 percent. The more meaningful U6 rate was unchanged at 7.3 percent.

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