Economics
Tepid Wages, Participation Mute Celebration on U.S. Jobless Rate
- Average hourly earnings rose less than forecast in April
- Fed expects low unemployment to eventually push up inflation
This article is for subscribers only.
The U.S. unemployment rate dipped below 4 percent for the first time in 17 years, but other details of the April jobs report kept any celebration in check.
Despite reports of firms struggling to find skilled workers, average hourly earnings showed a deceleration, rising 0.1 percent from the prior month and 2.6 percent from a year earlier, both less than forecast. Meanwhile, the participation rate slipped 0.1 percentage point to 62.8 percent, erasing part of an outsize gain from February that had indicated workers were being pulled in from the sidelines, Labor Department figures showed Friday.