The labor market just keeps growing…and growing…
Last week, the April employment report for the United States arrived. It showed that unemployment dropped to the lowest level in more than 50 years – 3.4 percent. Other highlights included:
There were signs that the labor market growth might be slowing down. The number of jobs created in February and March were both revised lower.
The Federal Reserve will be weighing the strengths and weaknesses of the labor market, as well as other data, as it makes future rate hike determinations. Last week, the Fed raised the federal funds rate from 4.83 percent to 5.08 percent, and Chair Powell suggested it could be the end of the tightening cycle, reported Jeff Cox of CNBC.
“As the Federal Reserve works to rein in inflation, the labor market’s confounding durability has given central-bank officials space so far to keep interest rates in restrictive territory without having to worry about widespread layoffs or acute economic pain,” reported Barron’s.
Last week, major U.S. stock indices finished the week with mixed performance, reported Barron’s. Yields on most U.S. Treasuries moved lower over the week.
https://www.bloomberg.com/news/articles/2023-05-05/hot-jobs-report-raises-odds-fed-keeps-rates-higher-for-longer#xj4y7vzkg (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2023/05-08-23_Bloomberg_Hot%20Jobs%20Report%20Raises%20Odds%20Fed%20Keeps%20Rates%20Higher%20Longer_2.pdf)
https://www.barrons.com/articles/april-jobs-report-today-a004fa27?mod=hp_LEAD_1 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2023/05-08-23_Barrons_Jobs%20Growth%20Is%20Robust%20But%20April%20Data%20Also%20Hints%20at%20a%20Slowdown_3.pdf)
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