US job market ‘tightening‘

US JOB growth rebounded sharply in April and the unemployment rate dropped to 4.4%, almost a 10-year low, pointing to a tightening labour market that could seal the case for an interest rate increase next month despite moderate wage growth.

Non-farm payrolls surged by 211 000 jobs last month, the Labour Department said, well above the monthly average of 185 000 this year and a jump from 79 000 in March.

The job gains were broadbased, with hefty increases in leisure and hospitality, health care and social assistance as well as business and professional services.

The drop of one-tenth of a percentage point in the unemployment rate took it to its lowest level since May 2007.

The decline reflected both an increase in hiring and people leaving the labour force.

“With continued solid job growth, the US economic expansion will continue throughout 2017.

“The Fed will raise the federal funds rate again in mid-june as the economy is approaching full employment,” said Gus Faucher, chief economist at PNC Financial in Pittsburgh. – Reuters