Slowdown in the US Labor Market in April; Bitcoin Rises Above $60,000

The employment outlook in the United States demonstrated a notable slowdown in April, according to the most recent data released by the Bureau of Labor Statistics. In the month in question, only 175,000 new jobs were added, a number below analysts’ expectations, which predicted an increase of 240,000 jobs. Additionally, the unemployment rate rose to 3.9%, contrary to projections that pointed to the index remaining at 3.8%.

Wage growth also fell short of economists’ forecasts. The average hourly earnings increased only 0.2% in relation to the previous month and 3.9% in the annual comparison, falling short of the expected 0.3% monthly and 4% annually. These data suggest a possible moderation in inflationary pressure, something that has been closely monitored by economic policymakers.

In a press conference held on Wednesday, Federal Reserve Chairman Jerome Powell commented on the current state of wage pressures. “Essentially all wage measures have fallen substantially from the peaks reached after the pandemic,” Powell said, easing concerns about wage-driven inflation.

Prior to this report, indicators such as the Employment Cost Index (ICE) showed an increase in the first quarter of 2024, reaching its highest level in a year. However, forward-looking analyses, such as the JOLTS dropout rate, indicate that wage growth may continue to slow. “Forward-looking indicators like the JOLTS dropout rate point to a further slowdown in wage growth,” wrote Nancy Vanden Houten, chief U.S. economist at Oxford Economics, in a note ahead of the jobs report.

After the announcement at the time of publication, the price of BTC was quoted at US$60,359.37, up 3% in the last 24 hours.

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