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Making Sense

Research Recap | April Jobs Report Shows Signs of Cooling

May 3, 2024
Chief U.S. Economist and Head of U.S. Inflation Strategy discuss the April Jobs Report, highlighting signs of labor market cooling, softer nonfarm payrolls, and rising unemployment rate. They explore implications for the Fed, wage growth, GDP forecast, and conflicting economic signals. Analysis includes Fed's strategies on inflation progress, rate cuts, and employment considerations in policy decisions.
09:27

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Quick takeaways

  • The April jobs report indicates a cooling U.S. labor market with softer nonfarm payrolls and rising unemployment rate.
  • Federal Reserve's rate cut decisions rely on inflation outlook, labor market trends, and potential post-election factors.

Deep dives

Analysis of April US Employment Report

The April US Employment Report reflected a moderation in job growth compared to recent trends. While the labor market is progressing towards balance, signs of cooling were observed and considered favorable. Job growth, particularly in the private sector, showed moderation, with the average work week also decreasing. This indicates a broader moderation in business labor demand.

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