U.S. Employers Scaled Back Hiring In April But Still Added 175,000 Jobs

Last month’s job growth amounted to a solid increase, though it was the lowest monthly job growth since October.

WASHINGTON (AP) — The nation’s employers pulled back on their hiring in April but still added a decent 175,000 jobs in a sign that persistently high interest rates may be starting to slow the robust U.S. job market.

Friday’s government report showed that last month’s hiring gain was down sharply from the blockbuster increase of 315,000 in March. And it was well below the 233,000 gain that economists had predicted for April.

Yet the moderation in the pace of hiring, along with a slowdown last month in wage growth, will likely be welcomed by the Federal Reserve, which has kept interest rates at a two-decade high to fight persistently elevated inflation. Hourly wages rose a less-than-expected 0.2% from March and 3.9% from a year earlier, the smallest annual gain since June 2021.

The Fed has been delaying any consideration of interest rate cuts until it gains more confidence that inflation is steadily slowing toward its target. Fed rate cuts would, over time, reduce the cost of mortgages, auto loans and other consumer and business borrowing.

Stock futures jumped Friday after the jobs report was released on hopes that rate cuts might now be more likely sometime in the coming months.