The US job market saw a rise in April with 253,000 nonfarm jobs added compared to the previous month. However, temporary roles fell by 23,300, and year over year, temp jobs decreased by 3.8%. Although the overall employment picture is relatively strong, the decrease in temp jobs suggests a slight decline in economic and employment growth.
Professional and business services, healthcare and leisure and hospitality saw job growth, although at slower rates than the previous months. Average hourly earnings increased over the past year by 4.4%, to $33.36. Meanwhile, unemployment rate dropped to 3.4% in April from 3.5% in March, and the college-level unemployment rate declined to 1.9%.
Despite the overall growth in the job market, some caution is warranted. Revision of total nonfarm employment from February and March was lower than previously reported by 149,000 jobs, and the three-month average is currently decreasing. Furthermore, demand for roles is concentrated in medical, IT and sales positions, which together represent 44% of all open positions – the lowest in two years.
It’s clear that although the job market has seen some growth in April, there is also evidence of a slowdown that could potentially affect future