The unemployment rate in the United States fell by one tenth and fell to 4.4% in April, the lowest in a decade, and hiring was rebounded with the creation of 211,000 new jobs following the disappointing March data, The government reported today.
That rate of 4.4% is the lowest since May 2007, according to the Labor Department report.
In addition, the strength of hiring in April dispelled fears following the poor March figures, when the economy generated only 79,000 jobs compared to the initial estimate of 98,000.
The 211,000 new jobs last month outpaced analysts’ forecasts, which had forecast about 190,000.
With the exception of March, job creation in the first few months of President Donald Trump’s term has remained solid and at 2016 levels, the last year of former President Barack Obama’s government.
From February to April, the monthly average was 174,000 new jobs, according to the report released today.
The Trump Government has promised to generate 2.5 million jobs a year, which would mean 208,000 a month.
In April, employment in the leisure and hospitality sector was recorded, with 55,000 new hires, as well as health and social assistance (37,000), professional and business services (39,000), and financial activities (19,000).
The Labor Department report also stated that the average hourly wage increased by 7 cents (0.3%) from March to 26.19 dollars, and since April last year has accumulated a Increase of 2.5%.
Usually, in the years of economic boom, wages grow between 3% and 4% per year.
As for the rate of citizen participation in the labor force, which reflects the number of people of working age who are actively seeking employment, it remained at 62.9%, practically stable.
Meanwhile, the long-term unemployed, who have been unemployed for more than 27 weeks, stood at 1.6 million in April, 22.6% of the total unemployed in the country.
“April employment data should put an end to worries that somehow the economy was slowing to a full stop,” Stephen Blitz, chief economist at TS Lombard, said in a note.
A similar reading gave the Federal Reserve this week commenting on the signs of weakness shown by employment data in March and GDP growth in the first quarter of 2017 when it grew at an annualized rate Of 0.7%, the worst in three years.
“The slowdown in growth during the first quarter is likely to be transitory,” a statement from the US central bank said at the end of its two-day meeting on monetary policy, in which it decided to keep benchmark interest rates unchanged. 0.75% and 1%.
The Fed noted that “economic fundamentals that sustain continued growth in consumption remain strong” and predicted that “economic activity will continue to expand at a moderate pace.”
US Treasury Secretary Steve Mnuchin acknowledged this week that “probably” will take two years to reach the promised 3% annual growth rate, once the fiscal reform is approved, progress is made on the deregulation agenda Trade agreements.
Following the release of the employment report in April, Wall Street opened today on mixed ground and the Dow Jones Industrial Average, its main indicator, was down 0.05% minutes after the start of operations.