The number of Americans filing for unemployment benefits unexpectedly rose last week to the highest level in more than a year, raising further concerns about the health of the labor market in the wake of a slowdown in job gains in April.
The U.S. economy added the fewest number of jobs in seven months in April and Americans dropped out of the labor force in droves, signs of weakness that cast doubts on whether the Federal Reserve will raise interest rates before the end of the year.
Total nonfarm payroll employment increased by 160,000 in April, and the unemployment rate was unchanged at 5.0%, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in professional and business services, health care, and financial activities. Job losses continued in mining.
The number of Americans filing for unemployment benefits rose more than expected last week, posting the biggest gain in more than a year, but the underlying trend continued to point to a strengthening labor market.
Being a full first week of the month means the typical early month economic data deluge. That includes the various global PMI’s Monday and Wednesday. Note that each of those will be one day later for the UK that is out on Monday for its annual Early Spring Bank Holiday.