HomeFinance NewsEconomyJob Market Meltdown: 175k Jobs Vanish, Unemployment Skyrockets

Job Market Meltdown: 175k Jobs Vanish, Unemployment Skyrockets


U.S. job growth totaled 175,000 in April, much less than expected, while unemployment rose to 3.9%


The US economy unexpectedly added only 175,000 jobs in April, below the estimated 240,000.

The unemployment rate rose slightly to 3.9%, raising hopes that the Federal Reserve might consider lowering interest rates in the future.

Average hourly earnings increased moderately, indicating a slower pace of inflation.

Despite this, the job market remains strong, suggesting a gradual economic slowdown without a sudden halt.

The healthcare sector showed significant job creation, along with other industries like social assistance, transportation, warehousing, and retail.

However, government job growth slowed after strong gains in recent months.

The report has shifted market expectations, with traders now anticipating a possible interest rate cut by the Fed in September and a total of two cuts by the end of 2024.

This development suggests that the Fed is likely to adjust its monetary policy stance to support the economy as it slows down, while balancing its efforts to control inflation.

The central bank’s continued monitoring of inflation and labor market data will guide its decisions on interest rate policy in the coming months.

  • Overall sentiment: positive
  • Positive

    “Wall Street already had been poised for a higher open, and futures tied to major stock market averages added to gains following the report.”

    “The report raised the prospect of a “Goldilocks” climate where growth continues but not at such a rapid pace to force the Fed to tighten policy further.”


    “The unemployment rate ticked higher to 3.9% against expectations it would hold steady at 3.8%.”

    “The jobless rate tied for the highest level since January 2022.”

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