The April jobs report is out and it’s a mixed bag.
In April, the U.S. economy added 164,000 jobs while the unemployment rate fell to 3.9%, according to the latest data from the Bureau of Labor Statistics. This unemployment rate matches a level last seen in December 2000.
Nonfarm payrolls were expected to have grown by 193,000 in April with the unemployment rate forecast to fall to 4%, according to estimates from Bloomberg. This decline in the unemployment rate breaks a six-month streak of the unemployment rate sitting at 4.1%.
Economists had forecast a 0.2% and 2.7% increase in monthly and annual wage gains, respectively.
An increase in wages is seen as a sign of potential inflation pressures building in the economy. In March, the Fed’s preferred measure of inflation showed a 1.9% increase over the prior year.
In its monetary policy statement released Wednesday, the
Fed acknowledged that inflation has “moved close to 2 percent,” a change from its previous language acknowledging price increases running consistently below its 2% target.