APRIL 8, 2024 – 303,000 JOBS ADDED IN MARCH, UNEMPLOYMENT FALLS TO 3.8 PERCENT
The US economy added 303,000 jobs in March, beating expectations for 200,000 jobs. The unemployment rate was down 0.1 percent from February to 3.8 percent. Average hourly earnings in March were up 4.1 percent from a year earlier, the smallest annual gain since June 2021.
A stronger than expected labor market gives pause to the Fed; increased consumer spending, due to increased employment, can fuel inflation and a strong labor market doesn’t push the Fed to lower rates sooner as the economy is not in distress. The Fed’s has stated their objectives are controlling inflation while keeping employment strong. Keeping rates where they are seem to be fulfilling both objectives. Though, a slight slowing in the labor market can be seen in the quitting rate, which has fallen to pre-pandemic levels.
Most Fed officials continue to project three rate cuts will be appropriate this year. Investors in interest-rate futures believe there is a greater than 50 percent chance that the Fed will cut rates at its meeting in June. The Fed next meets on April 30 – May 1.