The US labor market is still recovering. The unemployment rate fell to 3.9 percent in April, as US Department of Labor in Washington shared. This is lowest rate since end of 2000. In March it was still at 4.1 percent. Analysts had anticipated a decline in April, but only 4.0 percent.

However, fewer jobs were created in US last month than expected. In Labour report, Government reported 164,000 new jobs for April, experts had reckoned with 192,000. Analysts are explaining slightly lower job growth in first quarter with weaker economy. In first three months of 2018, gross domestic product (GDP) had grown by 2.3 percent – in final quarter of 2017 it was still 2.9 percent.

Neverless, market observers and market observers expect furr relaxation on labour market. "Growth is expected to rise sharply again in second quarter. This, in turn, should create more new jobs, "said Marco Bargel of Postbank. Moreover, situation in US labour market has improved considerably since severe economic crisis of 2008/2009. At that time, unemployment rate rose to almost ten percent. Meanwhile, many economists already speak of full employment.

The US Federal Reserve also recently expressed its positive opinion on situation on American labour market when it made its interest rate decision on Wednesday. It will continue to expect stable development in coming months. Analysts expect Fed to raise interest rates again in June, after last raising its key rate by 0.25 percentage points to new range of 1.5 to 1.75 percent on March 21.

Date Of Update: 05 May 2018, 12:02