US labor market adds 175,000 jobs in April as hiring slows

The US labor market showed signs of deceleration in April, with 175,000 jobs added compared to the previous month’s revised total of 315,000. The unemployment rate rose slightly from 3.8% to 3.9%.

Employment gains were observed in sectors including healthcare, social assistance, manufacturing, and construction. However, the information sector experienced job losses and recorded its slowest wage growth since August 2021. Overall annual compensation growth moderated to 3.9%, down from 4.1% the previous month.

Private sector data from ADP reported 192,000 jobs added in April. Financial markets reacted positively to the cooling data, as investors viewed the slowdown as a potential catalyst for Federal Reserve interest rate cuts. Federal Reserve Chair Jerome Powell noted that while inflation progress has been slower than expected, officials anticipate price increases to decline later in the year.