U.S. Jobs Growth Slows Down In April

The Bureau of Labor Statistics (BLS) released April’s jobs report, and mixed data has economists debating whether or not it creates a positive or negative outlook on the economy.

A Fox Business article highlights BLS data showing that employers added 160,000 jobs in April, which is well below economists’ estimation of 202,000 jobs. It’s also the smallest gain since September 2015. Meanwhile, the BLS reports that the unemployment rate held steady at five percent for the second month in a row.

In an interview with Fox Business, Sean Lynch, co-head of global equity strategy at Wells Fargo Investment Institute, said, “The labor market is in good shape and it doesn’t need big job-creation numbers to inspire market confidence. If those earnings tick up, it might inspire more confidence in the markets and the consumer.”

Some industries added more jobs than others—leisure and hospitality, financial services education and health services, and professional and business services saw the biggest gains in hiring during April. Industries like mining and logging, on the other hand, continued to let workers go.

According to Forbes, there are two main ways the Fed could read the April jobs report. They could either decide to hold off on raising interest rates because this is a sign the economy is weakening, or they could believe the U.S. is nearing full employment. Either way, the strength of the U.S. economy will continue to follow consumer spending habits.

“The consumer drives the economy and they’ve barely been in the game for the entire recovery and they’re holding back now,” said Dan North, chief economist at Euler Hermes North America in an interview with Fox Business. “We have to get consumers confident enough to spend instead of paying down debt and increasing savings.”

To read the original Fox Business article, click here.