April Jobs Report: According to the new April jobs report also known as the Employment Situation Summary, released by the U.S. Bureau of Labor Statistics (BLS) for the April jobs report , United States employers added 253,000 jobs in March, still coming in below expectations that economists did forecast and also above the 236,000 jobs created in march.
What is The Jobs report
The jobs report which is usually released on the first Friday of every month is based on surveys of households and employers. It usually estimates the number of people on payrolls in the United States economy, the average number of hours they worked weekly, as well as their average hourly earnings.
The jobs report provides estimates by state and metropolitan area, and by industry. The report also tallies the hours worked and earnings of production and non supervisory employees.
Layoffs in April Jobs report
Before the release of the April Jobs Report, in less than four months countless companies such as Bed Bath & Beyond laid off about 1,000 staffs, Walmart also joined the list of big companies that laid staffs off, this led to massive job cuts at Walmart, Glassdoor, Amazon also announced that the company will cut another 9,000 jobs across its global business, after announcing it had expanded staff-cutting plans to affect more than 18,000 workers, Facebook’s parent company, “META” reported 11,000 job cuts announced since November and the 10,000 announced recently, Citigroup, Twitter just to mention a few have all fired staffs to cut excess expenses.
What are the Feds saying
Fed Chairman Jerome Powell also acknowledged that higher interest rates were pressuring households and he also noted that the labor market has remained strong. He added that the economy “is likely to face further headwinds from tighter credit conditions.” The central bank is striving to get inflation down to a 2% annual level, though it is well above that now. One measure, the consumer price index, shows inflation running at a 5% annual pace. Rising wages have helped pressure prices. Powell said a 3% annual wage gain is probably consistent with the Fed’s 2% mandate.
Fed Rates Hike
The labour market in the April Jobs Report shows no fresh signs of deterioration with minimal job layoffs despite the news of big tech firings the last several months, and this will harden the resolve of Fed officials to slow economic demand down with higher interest rates. The New York Fed said the professional and business services, which include a wide range of jobs such as accountants, lawyers and engineers, added 43,000 jobs, the biggest gain across all industries. Average hourly earnings for workers in the industry rose by $0.24 to $40.20. That’s 20% higher than what the average private-sector worker earned last month.
All signs were pointing to a cooling labor market. Instead, the latest jobs report showed the unemployment rate fell to 3.4% in April after 253,000 jobs were added last month. Though it was above to what economists had expected, the April Jobs Report comes amid efforts from the Federal Reserve to slow labor demand in order to cool inflation, this is according to CNN reports.
