The April jobs report shows much stronger than expected growth, and the stock market has reacted by surging positively.
The U.S. Bureau of Labor Statistics said about 115,000 new jobs were added in April. The rate of unemployment held at 4.3%.
‘We are much stronger. … These are good numbers!’
Most of the gains were in the health care sector with 37,000 jobs, while both transportation and warehousing added 30,000 jobs.
The White House touted the comments from CNBC on-air editor Rick Santelli.
“The big jobs report for April — 65,000 expected! Nay, nay, nay! We are much stronger: 115,000!” he said. “And last month? Upward revision from 178,000 to 185,000! These are good numbers!”
Fifth Third Commercial Bank’s chief economist Bill Adams said that the job market was “inching out of low hire, low fire mode into moderate hire, low fire mode.”
“This is a very strong number, and I think it’s hard to argue against the notion right now that the labor market is on solid footing,” said Mark Reid of RBC Economics.
On the other hand, better jobs numbers will ease the pressure on the Federal Reserve to lower interest rates as one part of its mandate is to avoid inflation by overheating the economy.
One sector continuing to shed jobs was offices, which includes tech, telecom, data processing, and media. There were 13,000 office jobs lost in April, while another 12,000 were lost in financial activities.
The jobs report showed a 3.6% increase in average hourly earnings over the year, but that came in at less than the overall inflation rate of 4%, meaning overall the value of wages decreased slightly.
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“This is the big Achilles’ heel in the U.S. economy,” replied Navy Federal economist Heather Long. “Yes, workers have jobs, but this is a squeeze.”
“Trust in Trump!” responded Interior Secretary Doug Burgum. “Today’s jobs report smashed expectations because he is putting American workers, manufacturing and industry FIRST. The Golden Age has just begun!”
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