US Labor Market Shows Slower Job Gains and Rising Unemployment Claims

In April, the United States added 175,000 jobs, marking the 40th consecutive month of job creation, but the pace slowed compared with expectations. Unemployment rose modestly to 3.9% from 3.8% and wage growth decelerated to 3.9% year‑over‑year, down from 4.1% the month before. Gains were spread across healthcare, social assistance, transportation, warehousing, manufacturing and construction. Federal Reserve Chair Jerome Powell said the central bank needs greater confidence that inflation is moderating before cutting rates, noting that the Fed’s policy rate remains at a 20‑year high.

Meanwhile, weekly applications for unemployment benefits increased to 197,000, the lowest level in more than five decades, while the official unemployment rate eased to 4.2% as discouraged workers left the labor‑force count. The Labor Department reported a modest 1.5% growth in GDP for the April‑June quarter and a PCE inflation rate of 3.7%, still above the Fed’s 2% target. Higher oil prices linked to the U.S.–Iran conflict have added pressure on consumers and firms, but layoffs remain historically low.