Here is some good news: the US just added 160,000 jobs in last April. However, the bad news is that it completely undershot its target of 208,000 which was forecast in March. The February figures were also affected. From 242,000 only 233,000 were created.
Jobless rates remained at 5% but the average hourly earnings did increase 2.5%. April was a particular month as it is possible that an interest rate decision to be made by the US Federal Reserve would be affected by these numbers, BBC reported.
Fed policy makers will be meeting on June 14 for a two-day meeting and it is possible that they will increase interest rates. However, Aberdeen Asset Management has reported a "diminished prospect" for this. They said, "Anyone wanting a June hike should probably look away now. The headline number is disappointing, while the household survey looks particularly ugly."
"If there's a bright spot then it's wages which were a bit better than expected. That's important. The lack of any meaningful increase in wages has caused much head scratching at the Fed. But there's probably not enough here to keep a June hike a clear and present danger."
The chief economist of at Capital Economics, Paul Ashworth, is still optimistic. He said, "Overall, there is nothing here to swing the Fed's June rate decision very far in either direction. We still think the Fed will hike next month, but it's shaping up to be a close call."
The Fed raised interest rates for the first time in 10 years last December. They have additionally forecast two more rate hikes this year. Predictions have been mixed since then though as figures have shown sluggish growth with an annual pace of just 0.5% in the first quarter of 2016.
The strongest sectors have proven to be business services and healthcare with a recorded 65,000 and 44,000 increase respectively.
CBC reported that Canada too has lost 2,100 jobs in April. Unemployment has remained at 7.1% too according to Statistics Canada. The service sector added 35,000 jobs with an emphasis on wholesale and retail trade. The goods-producing industries offset this progress though.
Alberta lost the most jobs at 20,800. This figure was offset, however, with gains from British Columbia to the tune of 13,000 jobs. Newfoundland and Labrador also added 6,100 hobs.
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
