WASHINGTON (Reuters) - U.S. employers added 138,000 jobs in April, far fewer than had been anticipated, while annual wages rose at the strongest rate in more than 4-1/2 years, a Labor Department report on Friday showed.þþWall Street analysts had expected 200,000 new jobs would be created last month. Not only was the actual figure below forecast but the government also revised down March job growth to 200,000 from 211,000 originally estimated and February to 200,000 from 225,000 new jobs.þþThe unemployment rate was unchanged from March at 4.7 percent.þþThe April new-jobs number was the lowest for any month since October, when only 37,000 jobs were created in the aftermath of the hurricanes that disrupted many business activities in the Gulf Coast region.þþThe dollar dropped in value to one-year lows against the euro immediately after the jobs data was published. Both bond prices and stock futures prices climbed stocks.þþAverage hourly earnings rose 3.8 percent in the 12 months through April -- the stiffest year-over-year rise since a matching 3.8 percent pickup in August 2001.þþThat, together with the fact that hourly earnings in the month climbed 0.5 percent to $16.61, is likely to fan concerns about risks of wage-induced inflation. The Federal Reserve's policy-setting Federal Open Market Committee meets on May 10 and is expected to nudge interest rates up another quarter percentage point after its deliberations that will include a discussion of wage and price rises.þþAnalysts said the monthly data may foreshadow some slowing in the pace of economic activity, which was anticipated after the economy expanded at a buoyant 4.8 percent rate in the first quarter.þþ``The headline April payroll number was weaker than expected, showing some moderation in job growth which could portend some slowing in the economy,'' said Gary Thayer, chief economist at A.G. Edwards & Sons in St. Louis.þþ``But wage gains were still healthy so the Fed will probably still raise rates at its next monetary policy meeting on May 10,'' he said, adding, ``With wage gains being strong, the Fed will not rule out another rate hike in June based on these data.''þþThe length of the average work week increased to 33.9 hours in April after holding at 33.8 hours for the seven prior months. The department said April's work week was the longest since September 2002. A lengthening work week can signal that companies are having difficulty finding the workers that they need and that they are requiring staff to work longer and at potentially higher pay levels.þþManufacturing employment increased by 19,000 in April -- the strongest for any month since May 2004 when 23,000 were hired -- after growing by a slim 1,000 in March. But the number of jobs at retailers contracted by 36,100 after growing in March by 23,300.þþ
Source: NY Times
