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Image source, Getty Images
Job creation in the US remained robust last month, despite turmoil in the banking sector and the impact of higher borrowing costs.
Employers added 253,000 jobs, while the unemployment rate fell to 3.4%.
The gains were a reminder of the resilience of the US labour market, which has held up better than expected as the US central bank takes steps to cool the economy.
The Federal Reserve has raised interest rates sharply to curb price increases.
These increases have sharply increased the cost of buying a home or car, as well as making it more expensive to borrow to expand a business or take on other debt. In theory, that should reduce demand, leading the economy to slow and easing the pressures pushing up prices.
But a strong jobs market has kept consumer spending – the main driver of the US economy – healthy.
While job gains have slowed, on average, since last year, they continue to outpace the numbers that economists estimate are needed to keep up with population growth.
In April, the hiring was widespread across industries, despite job cuts announcements by some big tech companies, banks and other firms.
Image source, Brian Zovko
Software engineer Brian Zovko was laid off from his job in the car industry in February.
He said he was surprised because his company had been posting strong profits. But more recently bosses had raised the prospect of cost cuts, noting that they were concerned about the impact of higher borrowing costs and a slowdown in the economy.
The 27-year-old, who lives in Texas, says he has been relying on savings and trying to spend cautiously. He says he senses that the market has cooled over the past few months – but he was hopeful he would find a new job shortly.
“I’m mildly optimistic that I should be able to get back on track,” he said. However, he added, “it seems like there’s a decent risk the economy gets worse”.
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