Upbeat US payrolls gains seen
In April, American employment will most likely edge up again. However, a rush of jobless folks into the labor market will probably keep wage gain quite moderate and make the Fed refuse of another rate hike.
As a Reuters survey of economists states, last month nonfarm payrolls probably surged by 202,000 in US Labor Department data due for Friday’s publication after soaring by 215,000 in March.
The unemployment rate is expected to stay at 5% as improving labor market conditions attracted some previously discouraged job hunters back into the workforce.
Job market strength would back up the view that the economy is still healthy notwithstanding struggling growth in the first quarter. However, the influx of jobseekers might support the Fed’s argument that the labor market still has a slack.
Both wages and inflation are picking up now.
By the way, last month, the Fed provided a fairly positive assessment of the labor market, pointing out to improved conditions.