What to Expect from the April Jobs Report on Friday

Last Updated on May 3, 2024 by Robert C. Hoopes

In April, Hiring Remains Strong with Nonfarm Payrolls Expected to Rise by 240,000

The month of April saw continued growth in the job market, with hiring expected to show a gain of 240,000 nonfarm payrolls. Despite this positive news, the unemployment rate is forecasted to remain at 3.8%, a slight step back from the average job creation rate seen in 2024.

The labor market remains robust, with sectors such as health care and leisure and hospitality experiencing increased employment growth. Analysts predict that this growth will spread to other sectors like education, manufacturing, and warehousing in the coming months.

Federal Reserve Chair Jerome Powell has noted that wage pressures have eased, but inflation levels are still above the 2% target set by the Fed. This has led to hesitation in lowering interest rates, despite the strong job market.

The uncertainty surrounding the Fed’s rate path has caused fluctuations in the markets, prompting questions about which factor, unemployment or inflation, will be of greater concern to the central bank. Market analysts are closely monitoring wage numbers to assess the impact of factors such as immigration patterns and minimum wage increases on wage pressures.

Overall, the labor market has been full of surprises this year, surpassing Wall Street estimates with strong hiring numbers. While the outlook remains positive, the focus is on how wage pressures and inflation levels will shape the Fed’s decisions in the months to come.