Well job growth across the US slowed Last month and is signed the labor Market may be cooling this spring the Labor department says employers added 175,000 jobs in April that's the Smallest monthly job creation recorded Since October of last year unemployment Increased marginally to 3.9% it's hovered above 3 and a half% Since last summer but remains under 4% President Biden says this jobs report Shows quote the Great American comeback Continues but acknowledge there is more Work to do on the economy CBS News Senior business and Tech correspondent Jooling Kent is here to dig into this With us jooling it's good to have you so What should we make of this jobs report Is it good or bad news for the economy Elain this is still a strong jobs report Even though it missed wall Street's Expectations the most important things To look at here are twofold first the Market the labor market is cooling off Right now and that may be a good signal For the FED when it comes to their Desire and their hope to sometime cut Rates this year the other other two Little data points that I have been Watching is wage growth wage growth Moderated last month in April it sank to 3.9% year-over-year the other thing I'm Looking at is the average number of Hours worked per week that actually went
Down a bit and so that's signaling that The demand for labor right now is going Down a little bit so over overall still A very strong jobs report and still Shows that the labor market is in a Healthy place but certainly a cooling Off that so many economists have been Telling me that they were looking for And expecting in this April jobs report Elae well help us understand although Job growth slowed the unemployment rate Ticked up why is that figure in Particular not really wavered for Several months now yeah that's been Holding pretty steady we've seen layoffs Remain steady unemployment claims remain Pretty steady and so as a result seems Like a lot of companies are just sitting And holding we've SE seen some minor Layoffs across certain industries but Overall the idea for so many companies When it comes to investing in additional Jobs is to wait and see it's really Expensive to hire in a tight labor Market and so the idea is to kind of Hold but we are seeing significant Hiring in the healthcare industry which Is really interesting so I'll be Watching on that front as well well the Central bank has held interest rates Steady at its last six meetings is that About to change Well we'll see we expected the Federal Reserve to hold which they did this week
Uh and of course Federal Reserve chair Jerome poell has said they are willing To hold as long as necessary to get Inflation down so we'll see how this Jobs report factors into their decision But the committee is pretty unanimous in Their feeling about holding interest Rates the big question is if and when They cut this year the idea of three Interest rate Cuts is long gone we're Probably going to see something more Like one one interest rate cut this year The question is does it come in September maybe it comes in December June seems to be relatively unlikely Because inflation the price that you're Paying at the gas pump at the grocery Store for your auto insurance remains Sticky and stubborn and high and that Remains a pain point for people and so We'll see with as wage growth ticks down A little bit I don't think that that's Going to move the opinion of the Federal Reserve uh it would have to be a major You know labor soften a softening in the Labor market to actually push them in That direction on that data point alone So we'll see how this reads in uh for The FED but certainly a lot of people Hoping to get into the housing market This summer but if you're a saver good News is that those interest rates remain High and as Jill would advise you know You're going to make money if you put
Money in your high yield savings account Yeah you know but you mentioned Inflation joling it being sticky it's It's a paino that's certainly something That I think a lot of Americans are Feeling right now and they may be Wondering what exactly needs to happen Before people see some relief how does The US get there yeah that's a great Question because we've had sustained Higher interest rates for a long time Now right we've been sitting at over 5% From the FED now the prevailing feeling At the FED level is hold these interest Rates until we see inflation move down Meaningfully to 2% which is their goal But there is a little chatter among Economists and one fed Governor Michelle Bowman saying should is this working and Should the Federal Reserve raise their Interest rates instead of cutting them Now that's certainly not fully on the Table at the FED but the idea is that People are still spending demand is Still pretty good we are seeing some Numbers soften like you know hours Worked and and wage growth but what will It take to bring inflation down and Especially you Know it's of course really painful to Feel inflation at this sticky level Because even though it's come down from Its Heights of 2022 Things Are still so Expensive and it's compounding it's not
Like prices have gone down just they're Going up at a slower rate so we can see That pain point for so many consumers Especially lower income workers on that Front but this jobs report just another Data point for the FED to consider as They try to figure out what to do about Interest rates this year but that really Is the big one when it comes to how to Manage inflation and how to manage the Cost of borrowing money Elaine all right Jooling can't break it it all down for Us jooling thank you so much thanks l in
