U.S. Adds 177K Jobs, But 0.2% Wage Gain and 1.7M Long-Term Jobless Raise
Hiring Concentrated in Key Services Sectors
The bulk of hiring was concentrated in healthcare (+51,000), transportation and warehousing (+29,000), and financial activities (+14,000). These sectors outperformed recent trends, with transportation rebounding after a quiet March.
Financial services extended its recovery, while social assistance slowed to +8,000, well below its prior average of +20,000. Federal government employment declined by 9,000, adding to a 26,000 job loss since January. Other major industries, including manufacturing and retail, showed minimal movement.
Wages Miss Forecast as Long-Term Unemployment Rises
Average hourly earnings rose 0.2% in April, missing the 0.3% forecast and decelerating from the prior month’s pace. Year-over-year, wages are up 3.8%.
Earnings for production and nonsupervisory employees increased 0.3%. The average workweek remained unchanged at 34.3 hours, while manufacturing hours edged lower.
Meanwhile, long-term unemployment jumped by 179,000 to 1.7 million, now accounting for 23.5% of all unemployed persons—an indication of emerging slack in labor conditions.
Revisions Weigh on Overall Trend
The combined downward revision of 58,000 jobs for February and March underscores a slower employment trend than previously reported. Coupled with the rise in long-term joblessness and cooling wage gains, these revisions challenge the durability of labor market strength.
This article was originally published by a www.fxempire.com
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