The U.S. economy added 175,000 jobs and the jobless rate ticked higher to 3.9 percent in April, according to Labor Department data released Friday.
After several hotter-than-expected jobs reports, April’s employment gains fell short of economists’ expectations of 240,000 new jobs and a 3.8 percent unemployment rate.
The latest job report comes days after a Federal Reserve committee voted to hold off on cutting interest rates, which have sat at a range of 5.25 percent to 5.5 percent — the highest in 23 years — since last July.
While the move was widely expected, an uptick in inflation and other strong economic indicators have shifted the central bank’s rate cut timeline further into the future. Most traders don’t expect the Fed to start cutting rates until September, according to the CME FedWatch Tool, which lurched briefly to November on Wednesday.
“The slower jobs report will be welcome news to the Federal Reserve and signals that interest rate hikes are impacting a labor market that has been extremely resilient over the past few years,” said Joseph Gaffoglio, president of Mutual of America Capital Management.
“The Fed clearly stated that it is taking a cautious approach on the timing of any interest-rate cuts to ensure that inflation is well contained, and this could lead to continued pressure on the jobs market in the months to come.”
