US job growth slows as unemployment edges higher and wages lag

The U.S. Bureau of Labor Statistics reported that the economy added 115,000 jobs in April, keeping the unemployment rate at 4.3%. Job gains were led by health care and social assistance (54,000), with transportation, warehousing (30,000) and retail trade (22,000) also contributing. However, labor‑force participation fell slightly to 61.8% and the labor force shrank by 92,000, while average hourly earnings rose only 1.9% year‑over‑year, suggesting real wage growth is lagging inflation.

In September, the labor market added 119,000 jobs and the unemployment rate ticked up to 4.4%, while the broader U‑6 measure of underemployment stood at 8%. Private estimates for October anticipate a weaker gain of about 40,000 jobs, with continued losses in manufacturing and federal employment. Health services remain the only sector with consistent expansion. Inflation for September was 3% year‑over‑year, driven mainly by shelter costs, while tariffs contributed only modestly to price pressures. Analysts note that the Federal Reserve’s high interest rates are keeping mortgage rates and rents elevated, limiting affordability despite subdued overall inflation.