Job creation in the private sector in the United States rebounded strongly in April, defying analysts’ forecasts, in a context of a slowdown in the labor market linked to the fight against high inflation.
Last month, private sector companies created 296,000 jobs in the United States, according to the monthly ADP/Stanford Lab survey released Wednesday.
This is double the 145,000 creations that were expected, according to the Briefing.com consensus. Creations for the month of March have been revised down to 142,000 instead of the 145,000 initially announced.
Despite this unexpected rebound in job creation, wage growth continued to slow, to 6.7% in a year for people who stayed in the same job, compared with 6.9% in March. For those who have changed jobs, the increase is 13.2%, compared to 14.2% the previous month.
slower wage growth
“The slowdown in wage growth gives the clearest signal of what is happening in the labor market right now,” ADP chief economist Nela Richardson said in the statement.
“Employers are aggressively hiring while reining in wage gains as workers retire. Our data also shows that fewer people are switching jobs,” he added.
The US labor market has suffered from a significant labor shortage for two years, which has pushed up wages.
This has contributed to rising inflation, which the US central bank wants to curb. It does this by deliberately curbing economic activity in the United States, which should lead to a slowdown in the labor market and an increase in the unemployment rate.
The US central bank, the Fed, which ends its policy meeting on Wednesday, is expected to announce a further rate hike, which would further increase the cost of credit for households and businesses, with the order to slow down economic activity.
Source: BFM TV
