US job growth tops expectations as non-farm payrolls rise 115,000

(Sharecast News) - US job growth heated up in April, with non‑farm payrolls rising by 115,000, according to the Bureau of Labor Statistics, coming in well and truly above expectations for a much softer increase of 63,000.

Across major demographic groups, unemployment rates showed minimal movement, while broader labour‑market participation was also largely flat. The participation rate held at 61.8% and the employment‑to‑population ratio remained at 59.1%. The number of people working part‑time for economic reasons rose sharply to 4.9m, suggesting some softening in labour demand, although long‑term unemployment was broadly unchanged at 1.8m.

Hiring was concentrated in a handful of service‑sector industries - with health care adding 37,000 jobs, in line with its recent trend, while transportation and warehousing gained 30,000, driven by a jump in courier activity. Retail trade contributed 22,000 jobs, with gains in general merchandise and building‑supply stores offset by losses in department stores and electronics retailers. Federal government employment continued to decline, falling by 9,000 in the month.

The information sector, however, remained under pressure, shedding another 13,000 jobs, with losses across telecommunications, media and data‑processing activities.

Wage growth eased slightly, with average hourly earnings rising 0.2% on the month and 3.6% year‑on‑year, while the average workweek edged up to 34.3 hours.

Elsewhere, revisions to prior months' data left employment in February and March a combined 16,000 lower than previously reported, reinforcing the picture of a labour market that has started to cool, but was still avoiding a sharp downturn.

The unemployment rate held steady at 4.3%, with the number of unemployed people little changed at 7.4m.

Reporting by Iain Gilbert at Sharecast.com