Job creation in April bounced back from a disappointing March, with nonfarm payrolls growing by 211,000 while the unemployment rate fell to 4.4 percent, its lowest since May 2007.
Economists surveyed by Reuters had been expecting payroll growth of 185,000 and the headline jobless rate to tick up one-tenth to 4.6 percent. The payroll increase nearly tripled the dismal March number.
Wages grew seven cents an hour to an annualized pace of 2.5 percent.
The unemployment rate dropped even as the labor force participation rate edged lower to 62.9 percent. The employment-to-population ratio increased to 60.2 percent, its best showing of 2017 and the highest level since February 2009.
An alternative reading on the unemployment rate that includes those not actively looking for jobs as well as those working part-time for economic reasons dropped to 8.6 percent from 8.9 percent in March, the best reading since November 2007. Those counted as not in the labor force swelled to 94.4 million but was countered by an increase of 156,000 counted as employed, according to the household survey.
Job growth was concentrated in lower-paying areas, with leisure and hospitality adding 55 positions. Health care and social assistance rose 37,000, financial activities grew by 19,000 and professional and business services grew by 39,000.
The report comes a month after a dismal March that saw payrolls grow by just 79,000, a number that was revised lower from 98,000. That number dashed some of the hopes that the economy was poised for a breakout year in 2017.
That weak March payroll gain also closed out a disappointing quarter for U.S. growth overall, with gross domestic product rising just 0.7 percent.
However, the Federal Reserve, at its two-day meeting earlier this week, projected that the weakness to start the year was likely “transitory” and likely to change as seasonal factors abate.
The central bank is widely expected to hike its benchmark interest rate a quarter point at its June meeting.
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