US private employers increased hiring in April, but there are signs the job market is slowing due to higher interest rates.
296,000 private sector jobs opened last month, the ADP National Employment report showed Wednesday.
March data has been revised downwards to show 142,000 posts rather than 145,000 as previously reported. Economists polled by Reuters had predicted 148,000 jobs would be created.
The Federal Reserve is set to raise its benchmark interest rate another 25 basis points to the 5.00%-5.25% range by the end of Wednesday’s policy meeting before potentially halting the campaign.
Higher interest rates are cooling demand for workers and hiring could be eroded by a tightening of bank lending following the recent financial market turmoil.
A stalemate to raise the federal government’s $31.4 trillion loan limit poses a major risk to the economy and ultimately the job market.
Treasury Secretary Janet Yellen warned on Monday that the government could run out of cash within a month.
The government said on Tuesday that there were 9.6 million open jobs at the end of March, the lowest level since May 2021. However, the labor market remains tight, with 1.6 jobs for every worker unemployment in March, well above the 1.0-1.2 range that economists say is consistent with a labor market that doesn’t generate much inflation.
The ADP report, developed in partnership with Stanford’s Digital Economics Lab, was released Friday ahead of the Labor Department’s more comprehensive and closely followed jobs report, featuring data for March.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
