US jobs data beats expectations for second month in a row

The U.S. economy added 115,000 jobs in April, nearly double economists' forecasts, while the unemployment rate held steady at 4.3% [1]. The stronger-than-expected hiring occurred despite economic fallout from the U.S.-Israel war in Iran, which has sparked a global energy shock [1]. The data from the U.S. Bureau of Labor Statistics follows months of volatility; non-farm payrolls fell by 156,000 in February before rising by 185,000 in March [1]. Revisions mean job creation has averaged 48,000 over the past three months, a pace in line with absorbing new workforce entrants [1]. The figures add to expectations the Federal Reserve will keep interest rates on hold to manage inflation [1]. Economists noted strength in retail and transportation sectors. "Both give relatively positive signals about the health of discretionary spending, despite the hit to consumers' purchasing power from higher gasoline prices," said Thomas Ryan of Capital Economics [1]. Ryan called the report "positive" and reinforcing a view of a stable, potentially accelerating labor market [1]. However, Samuel Tombs of Pantheon Macroeconomics said job growth was likely to start to slow in the coming months, with the unemployment rate potentially rising to 4.7% by year-end, which could prompt Fed rate cuts from December [1].