The pace of employment growth in USA slowed in April 2016, which is another sign that the economy has not yet fully recovered from the problems at the beginning of the year. During the last month, the employers in the private sector of the country (excluding agriculture) have created a new 160,000 obs, while expectations were for 203,000 new jobs. Moreover, the statistical department revised downwards the data for newly created jobs in February and March. In March were opened 208,000 new jobs against the previously reported 215,000, while inFebruary their number was 233,000 against the initially reported 245,000.
However, unemployment remained at level of 5%. Meanwhile, the data of the US labor ministry show that more and more people drop out from the labor force and economic activity decreased for the first time in seven months ago. The growth of new jobs in the US is the weakest since September 2015. However, the average salary increased by 0.3% to 25.53 USD per hour, representing a 2.5% yoy growth.
Weaker than expected data on employment in the country may change the intentions of the Federal Reserve to continue to increase interest rates. The central bank may decide to wait for further evidence that the economy is out of risk after the weak first quarter.
Following the publication of the data, the USD fell against EUR and JPY. The yields on 30-year US government bonds fell by 2 basis points to 2.584%, while 2-year dropped by 2.4 basis points to 0.702%.