April Jobs Report

The US economy added 175,000 for the month of April but below estimates. The unemployment rate increased from 3.8 % to 3.9%. The median forecast for April’s payroll gain was the highest since September 2022 as economists kept proving too low in their estimates and have now increased their predictions.

The labor market has had several surprises this year, during a time when economists expected hiring to have slowed down. In March, there was a gain of 303,000 jobs which shattered forecasts and was part of a larger picture that showed a strong labor market with increasing wages.

Layoffs have drifted along at a low level and wage growth has remained strong. The Employment Cost Index, which measures other employer-provided benefits and salaries, rose faster than expected in the first quarter. One possible reason could be pointed to employers’ incentive employees to stick around rather than letting them leave for another opportunity.

This might be welcomed news for those in the real estate world and elsewhere who are looking to the fed to cut interest rates sooner than later.