2023-06-01 12:46:16
(Washington) Private sector companies created 278,000 jobs in April, a still strong pace, although slower than the 296,000 in April, and with strong disparities between sectors, according to the monthly ADP/Stanford Lab survey released Thursday.
“Job growth is strong, while wage growth continues to slow,” said Nela Richardson, chief economist at ADP, quoted in the statement.
While the leisure and hospitality, natural resources and construction sectors have created jobs, manufacturing and finance have destroyed them.
Analysts were expecting just 180,000 creations, according to MarketWatch consensus.
In addition, wage growth slowed sharply, to 6.5% for people who stayed in the same job (6.7% in April), and 12.1% for those who changed jobs (1 point less than the previous month)
“This is the second month that we’ve seen a full one percentage point drop in wage growth for job changers. Wage growth is slowing significantly and wage-induced inflation may be less of a concern for the economy despite robust hiring,” commented Nela Richardson.
Official employment figures for May in the United States, private and public sectors combined, will be published on Friday. The unemployment rate is expected to rise very slightly, to 3.5% once morest 3.4% in April, with fewer job creations (188,000 once morest 253,000).
The labor market has been very tight for more than two years, with employers facing a major labor shortage. However, the first signs of a slowdown seem to be appearing.
“The economy continues to create jobs at a high rate and the unemployment rate remains historically low, indicating that the labor market is still strong,” said Rubeela Farooqi, chief economist for HFE, in a note.
But the pace of wage growth “is expected to moderate as the lagged and cumulative effects of monetary policy ripple through more broadly across the economy,” she added.
Weekly jobless claims were up in late May for the second week in a row, according to figures released Thursday by the Labor Department.
The Fed, since March 2022, has raised its key rates in order to curb high inflation. This in fact leads banks to raise the cost of the loans they offer to households and businesses, in order to ease the pressure on prices.
A survey by the US central bank (Fed), released on Wednesday, showed that employers in the United States, which have faced a labor shortage for more than two years, are still having “difficulty finding workers across a wide range of skill levels and economic sectors”.
However, they note “easier hiring in construction, transport and finance”, according to this “Beige Book” (Beige Book), a barometer of activity.
1685627237
#United #States #private #sector #created #jobs #April #expected
