April adds 115,000 jobs; participation hits post‑COVID low

U.S. employers added 115,000 nonfarm payrolls in April, the Labor Department reported Friday. March payrolls were revised up by 7,000 to 185,000. The unemployment rate was 4.3% in April, little changed from the prior month.

The three‑month average pace of payroll gains is about 48,000, a level above estimates of the breakeven rate of job creation needed to keep the unemployment rate steady. The labor force participation rate declined to its lowest point since the COVID downturn, reflecting a smaller share of people working or actively seeking work.

Average hourly earnings did not accelerate in the report, and wage growth remained muted. Consumer sentiment fell to a record low in the University of Michigan survey. Nationwide gasoline prices averaged above $4.50 per gallon, according to market price data.

Komson Silapachai and Thomas Urano of Sage Advisory wrote that “the bar is high for a rate hike and the base case is that the Fed remains on hold through the balance of the year.” They added, “We believe current conditions warrant neither a rate hike nor a rate cut.” The analysts also noted recent voting dissent on the Federal Open Market Committee and the planned continuation of Jerome Powell on the Board of Governors.

Payrolls, unemployment, wage trends and participation are among the indicators the Federal Reserve reviews when assessing policy under its dual mandate of price stability and maximum employment. The April data will be among the inputs the Fed considers at its May meeting.