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April Jobs Report Shows Hiring Remained Robust in a Slowing Economy

Photo Caption: Employers added 253

Hiring strengthened in April, showing the job market is resilient amid banking turmoil, rising interest rates and high inflation.

Employers added 253,000 jobs in April, the best gain since January, the Labor Department said Friday. The jobless rate fell to 3.4% last month, matching the lowest reading since 1969.

A historically low unemployment rate kept pressure on wages, which grew 4.4% in April from a year earlier. That was slightly higher than a 4.3% annual increase in March.

Last month’s job growth suggests the labor market remains a pillar of strength in a cooling economy. The economy grew more slowly to start the year versus the end of 2022 as businesses cut back on investments, while the housing market remained weak. Many economists forecast the U.S. to slip into recession in the next 12 months.

The jobs report does little to clarify the outlook for Federal Reserve policy because officials will have one more employment report before their June 13-14 meeting and because they are paying closer attention to banking stress.

Officials raised their benchmark federal-funds rate this week to a range between 5% and 5.25%, the highest level in 16 years, to slow down the economy and combat inflation. Fed Chair Jerome Powell suggested that the central bank might pause rate rises after that to study the impact of its rapid increases over the past year and assess any fallout from the failures of three midsize banks since March.

Friday’s report showed job gains in most industries. Businesses in professional and business services, healthcare, and leisure and hospitality bulked up with workers in April. Temporary-help agencies cut jobs.

After the pandemic spurred a rise in pet ownership, Goodheart Animal Health Center has hired front-desk staff as well as veterinarians and nurses in recent months to meet the demand from pet owners bringing their dogs and cats in for checkups and surgeries, said Alex Robb, medical director at one of the two Denver locations.

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