USA unemployment falls to 10-year low in April

US employment growth seen rebounding, wages increasing

WASHINGTON (Reuters) - U.S. job growth rebounded sharply in April and the unemployment rate dropped to 4.4 percent, near a 10-year low, pointing to a tightening labor market that could seal the case for an interest rate increase next month despite moderate wage growth.

Employers added 79,000 jobs in March, partly because of a snowstorm that weighed on economic activity, revised figures released by the government Friday showed. Over the first three full months of Trump's presidency, the economy has averaged 174,000 jobs added per month.

This jobs report bolsters that interpretation, with gains across industries - even in sectors such as retail, which struggled earlier in the year, according to Gus Faucher, chief economist for PNC Financial Services.

USA jobs growth made a massive recovery in April as the unemployment rate fell to 4.4%.

As a comparison, when the unemployment rate was at similar levels in 2007, pay scales were growing at 3.5%.

"With continued solid job growth, the US economic expansion will continue throughout 2017". "The Fed will respond accordingly". The increase could ease the way for an interest rate rise in June despite moderate wage growth. Factories added 6,000 jobs after a 13,000 gain, while construction workers rose by 5,000, following a 1,000 gain in March. The April manufacturing unemployment rate fell 0.6 percentage points from March to 3.9 percent.

The official released indicated, Public sector employment increased by 35,000 in April, largely in health care and social assistance and educational services.

Falling unemployment, rising wage growth and strong job gains in recent years have put the US economy in a better spot than it has been.

Recent GDP figures showed the USA economy grew at an annual rate of 0.7% in the first three months of this year, the slowest rate since the first quarter of 2014, raising concerns that the economy could be weakening. In addition, though, average hourly earnings rose by 2.5 percent over the previous year, now at $26.19.

The jobless rate has dipped below six per cent a few times over the past ten years, but hasn't been this low in a decade.

"What you're seeing now is more minimum-wage type jobs", said Skip Aylesworth, a portfolio manager for Hennessy Funds.

The unemployment rate continued to fall and rising wage growth coupled with job gains indicate an economy on the rise. The more expansive definition of unemployment, which the BLS calls U-6 and includes everyone working part time who wants full-time work, and other people marginally attached to the workforce, came in at 8.6 percent in April.

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