Economy

Boost for Trump as U.S. jobs growth rebounds

Boost for Trump as U.S. jobs growth rebounds

The labor market rebounded from March, in which 79,000 new jobs were created, a weather-related slowdown that was the lowest monthly increase since last spring.

According to data released by the Labour Department on Friday, the total nonfarm payroll employment increased by 211,000 in April, beyond market expectation of 185,000. A survey by payroll processor ADP released Wednesday showed the private sector adding 177,000 jobs in April, slightly topping expectations, while another survey by professional networking site LinkedIn released the same day suggested that April was the strongest month for hiring in almost two years. ADP the payroll processor said that businesses added 177,000 new jobs during April.

The health care and social assistance, financial activities, and mining sectors also saw notable job growth during the month.

U.S. Secretary of Labor, Alexander Acosta released a statement regarding jobs growth this past April.

A broad measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they can not find full-time employment, dropped to 8.6 per cent from 8.9 per cent in March.

While Canada's unemployment rate dropped to levels not seen in almost a decade, Calgary's jobless rate stalled at 9.3 per cent, according to the latest jobs report.

Many economists say the U.S.is now at or near "full employment", meaning the unemployment rate won't go down significantly more and wage growth should start to speed up. "The Fed will respond accordingly". The US central bank, also known as the Fed, held pat on its benchmark overnight interest rate earlier this week after raising that rate by a quarter of a percentage point in March.

The official unemployment rate was 4.4 percent in April.

Yet some economists noted that the gains made by the broader economy still do not appear to be translating into big wage increases for workers - something that many had expected by now. In addition, though, average hourly earnings rose by 2.5 percent over the previous year, now at $26.19.

Some economists are even forecasting a 3 percent economic growth rate, far above last quarter's 0.7 percent rates.

Another drop in Windsor's jobless rate. The number of Americans not participating in the labor force increased from 94,213,000 in March to 94,375,000 in April. Friday's better-than-expected employment report combined with low initial jobless claims and the strong services PMI pushed up the odds of a June hike by the Federal Reserve. As the economy expands and more people who want jobs are able to find them, employers should have to compete more to find talented people - which should force them to offer higher wages.