According to the data released by the Department of Labor, non-farm employment in the USA increased by 428,000, exceeding expectations.
Non-Farm Employment Increases More Than Expectations
Economists had expected 400,000 for this data. Growth in April was in line with the revised 428,000 additional jobs reported for March.
Unemployment rate remained unchanged at 3.6%.
The data released by the Ministry included the following statement:
“Employment growth was broadly led by gains in entertainment and accommodation, manufacturing, transportation and warehousing.
The monthly employment status summary is being watched closely by economists to assess whether a strong labor market could mean more inflation.
Bitcoin and the Fed
Many investors Bitcoin Although he thinks of it as a protection against inflation, the world’s largest crypto money has experienced a great price drop with the last steps of the FED, just like the stock and bond market.
With the latest data from the USA, the decline in BTC price continues.
US Inflation May Continue to Rise With Latest Data
The current labor market is considered full employment by many economists, as only 5.4 million people were looking for work, compared to 11.3 million job postings in February.
Average hourly earnings rose 0.3% to 5.5% year-on-year, according to Friday’s Department of Labor report.
With the increasing number of employment and unemployment rate, the pressure on the FED, which is currently struggling with the highest inflation rate of the last 40 years with 8.5%, may increase.
A tighter job market tends to increase wages as workers have more options and employers must pay to hire or retain them. Therefore, employers try to cover their increasing costs from consumers by increasing the price of their products.
*Not investment advice.