US economy added 428,000 new jobs in April

Financial Times says the US economy continued to add jobs at a rapid pace last month even as employers struggled with a shortage of workers and demands for higher wages. Non-farm payrolls grew by 428,000 in April, according to data released by the Bureau of Labor Statistics.

Nonfarm payrolls increased by 428K in Apr-22, rising at the same pace in the previous month and higher than 391K predicted by market consensus.

This reflects the job creation in the US economy remained at a strong level although American firms continued to indicate challenges to fill in vacancies due to labour shortages.

The stronger-than-expected job creation was led by hirings in the services sector particularly hospitality & leisure.

jobs by sector

Jobs were also added in other sectors such as manufacturing, transportation & warehousing, construction and retail trade. Nevertheless, the US unemployment rate remained unchanged at 3.6%, the lowest level since Feb-20.

The resilient job creation in Apr-22 supports the Fed’s plan to tighten its monetary policy as the tight labour market and the rising wages also add to the inflation pressures.

“Therefore, we opine the Fed will continue to raise its policy interest rates at upcoming meetings to ease demand pressure and to contain the high inflation in the US,” says MIDF.