- Employers created 175,000 jobs in April, while the unemployment rate rose to 3.9%.
Stocks rose Friday morning after data showed the U.S. labor market is finally showing signs of cooling.
Employers added 175,000 jobs in April, while the unemployment rate rose to 3.9 percent, up from 3.8 percent in March, the Labor Department reported.
Analysts said it was a “goldilocks number”: neither too hot nor too cold, which could help reduce inflation.
The Dow Jones Industrial Average rose 322 points Friday morning, while the S&P 500 rose 45 points.
Analysts expected growth of 250,000 jobs, according to Briefing.com.
Stocks rose Friday morning after data showed the U.S. labor market is finally showing signs of cooling.
While hiring has slowed, the number of jobs created in April remains well above 100,000, the average level that some economists say is necessary to keep the unemployment rate stable.
For now, the latest figures could be encouraging for authorities seeking to gradually cool the economy.
In addition to a decline in hiring numbers, officials also expect a slowdown in wage increases as they seek to reduce inflation in the long term.
In April, wage growth was 0.2 percent (up from 0.3 percent in March) on a monthly basis, according to the Labor Department.
Compared to a year ago, average hourly earnings increased 3.9 percent in April, falling below 4.0 percent for the first time since 2021.