The U.S economy took another step towards full employment in April when it created 211,000 new jobs. The unemployment rate is now at 4.4%, down from March’s 4.5% and well down on the 5.0% unemployment rate of April 2016. Hourly pay rose from USD$26.12 to USD$26.19 or +2.5% year on year.
The median forecast of new jobs created was +190,000, while the unemployment rate was expected to rise to 4.6% as the total number of people in the workforce rose. However, as well as a higher-than-expected jobs figure, the participation rate edged down from 63% to 62.9%, sending the unemployment rate lower.
The last time the unemployment rate was this low was in March 2007. At that time the federal funds rate, the U.S. official interest rate, was at 5.25%. Given the current target rate is 0.75%-1.00%, this latest unemployment result makes a rate rise at next month Federal Open Markets Committee meeting a likely event.