USA job growth surges; unemployment rate drops to 3

U.S. hiring topped forecasts

U.S. hiring topped forecasts

USA job growth continued to increase during the month of April and the overall unemployment rate dropped to a more than 49-year low of 3.6 percent. Average hourly pay rose 3.2% from the previous year, a healthy gain though unchanged from the previous month.

The April jobs report is out, and the numbers look very good.

The two-tenths of a percentage point drop in the unemployment rate from 3.8 percent in March was because 490,000 people left the labor force in April.

Unemployment also fell to its lowest since the recession 10 years ago with a rate of 3.6 per cent, which was 0.2 per cent less than in March. A majority of Americans, 56%, rate their current financial situation as "excellent" (12%) or "good" (44%), while 29% rate it as "only fair" and 15% as "poor.' This overall positive rating has increased 10 percentage points since 2015 and is now the highest since 2002 though it is statistically unchanged since past year".

"We are clicking on all cylinders, the inflation rate is coming down, the Federal Reserve will be looking at that", Kudlow said during an interview with CNBC.

On the flip side, retail trade employment continues to fall drastically, shedding another 12,000 jobs following a loss of 15,000 jobs in March.

Hiring was strong across most sectors with especially large gains in business services (76,000 jobs added), construction (33,000 jobs added) and health care (27,000 jobs added).

"U.S. consumer spending increased by the most in more than 9-1/2 years in March as households stepped up purchases of motor vehicles, but price pressures remained muted, with a key inflation measure posting its smallest annual gain in 14 months".

Manufacturing employment rose by 4,000.

USA employers likely maintained a strong pace of hiring in April while steadily increasing wages for workers, pointing to solid economic growth and moderate inflation pressures. The jobless rate is now below the 3.7 percent that Fed officials project it will be by the end of the year.

Government hiring also was the strongest in eight months, with 27,000 jobs created - likely due in part to hiring for the 2020 USA census.

A broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they can not find full-time employment, was unchanged at 7.3% in April.

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