U.S. economy adds 428,000 jobs in April, besting previous forecasts

Job growth across the U.S. economy picked up in April, suggesting that the labor market has withered the storm caused by rising interest rates, soaring inflation, a worsening labor shortage and renewed fears of a COVID-19 induced lockdown.

According to data from the Labor Department, U.S. employers added 428,000 jobs in April, besting the 391,000 jobs forecasted by economists at Refinitiv and marking the 12th consecutive month that job gains surpassed 400,000.

Meanwhile, unemployment has held steady at 3.6%, the lowest rate recorded since February 2020.

Although new jobs were created across all sectors, the data shows that the biggest increases were seen in the leisure and hospitality industry (78,000), manufacturing (55,000), and transportation and warehousing (52,0000).

Furthermore, labor force participation fell 0.2 percentage points in April, reaching 62.2% -- the lowest level recorded in 2022 as the labor force shrank by 363,000 workers.

"The job market continues to plow forward, buoyed by strong employer demand. After just over two years of the pandemic, the job market is remaining resilient and on track for a return to pre-pandemic levels this summer," Glassdoor chief economist Daniel Zhao said, Fox News reported. "However, the job market is showing some signs of cooling as it turns the corner and the recovery enters a new phase."

Millions of workers have seen the largest pay gains in years as firms compete to attract a limited number of employees. The data has even shown that earnings rose 5.5% in April from the previous year, nearly doubling the pre-pandemic average of 3%.

Although the numbers have left some analysts feeling optimistic, many of the gains have been eroded by unprecedented levels of inflation and rising prices for goods like fuel, food and clothing.

Inflation in the U.S. hit a 40-year high last month to 8.5% across a variety of everyday goods known as the consumer price index. Specifically, food prices rose by 8.8% over the year and 1% over the month.

Gas prices in March rose 48% over the year and 18.3% over the year over uncertainty created by Russia’s invasion of Ukraine.

The price pressures come after two years caused by the COVID-19 pandemic, which amplified food insecurity as U.S. economy slowed to a crawl, especially in urban areas.