The April jobs report was softer than what experts were expecting with the US economy adding 175,000 new jobs during the month, accompanied by a modest 3.9% growth in wages. Joining Market Domination to discuss this report is T. Rowe Price Chief US Economist Blerina Uruci.
Uruci acknowledges that the jobs report represented “a big miss relative to expectations.” However, she notes that investors are interpreting it as “a soft report” due to the “big upside surprises” witnessed in the first quarter, labor prints now cooling after significant labor market gains in the past few months.
Uruci says this jobs report shows the Federal Reserve that “this patient approach” on inflation is “paying off.” However, Uruci highlights two areas of concern: the concentration of job growth primarily in the healthcare and education sectors, and “the gradual increase” in the US unemployment rate.
Additionally, Uruci addresses the ongoing wage growth pressures, stating “we’re moving in the right direction” and characterizing the slowing growth as “particularly encouraging.”
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Editor’s note: This article was written by Angel Smith
