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MNI:US April Hiring Below Expected, Jobless Rate Rises To 3.9%

(MNI) WASHINGTON

Average hourly earnings also missed expectations in a weaker-than-expected jobs report.

U.S. employers added 175,000 payrolls in April and the unemployment rate ticked up a tenth to 3.9%, the Bureau of Labor Statistics said Friday, a less robust picture than the 240,000 jobs and steady jobless rate that analysts had expected. Payrolls in the previous two months were also revised down by 22,000. Average hourly earnings grew 0.202% in the month, a tenth less than median Wall Street expectations.

The data should allay fears that the Federal Reserve might need to keep interest rates at their 23-year high into next year, or worse, raise rates again. The U.S. dollar sold off on the report and traders brought forward Fed rate cut pricing. (See: MNI INTERVIEW: Fed Set To Start Easing By Year End-Haslag)

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U.S. employers added 175,000 payrolls in April and the unemployment rate ticked up a tenth to 3.9%, the Bureau of Labor Statistics said Friday, a less robust picture than the 240,000 jobs and steady jobless rate that analysts had expected. Payrolls in the previous two months were also revised down by 22,000. Average hourly earnings grew 0.202% in the month, a tenth less than median Wall Street expectations.

The data should allay fears that the Federal Reserve might need to keep interest rates at their 23-year high into next year, or worse, raise rates again. The U.S. dollar sold off on the report and traders brought forward Fed rate cut pricing. (See: MNI INTERVIEW: Fed Set To Start Easing By Year End-Haslag)

Keep reading...Show less