US employers increased their payrolls by 175,000 in April — a notable slowdown from the average 276,000 new jobs per month created so far this year.
Last month’s pace of hiring marked a change of tune from a recent trend in the labor market, where resilience has bolstered the Federal Reserve’s case that interest rates aren’t quite ready to be slashed.
April’s job growth figure fell short of the 240,000 roles analysts were predicting — suggesting the possibility that the economy could be headed towards a slowdown worthy of an interest rate cut.
The closely watched jobs report also showed that the unemployment ticked higher to 3.9%, up from the month-ago rate of 3.8%.
The Dow Jones consensus had anticipated unemployment to remain unchanged.
April was the 27th straight month that the unemployment rate held below 4%.
March’s impressive 303,000 gains were shockingly revised up by 12,000 to a total of 315,000, and the Labor Department slightly revised February’s 270,000 additional roles down by 34,000, to 236,000, on Friday.
April’s jobs report showed strength in hiring primarily across the healthcare, social assistance and transportation industries.
Employment in retail also continued to trend upwards, while jobs across construction and government didn’t experience any notable increases, according to the Bureau of Labor Statistics.
The endurance of the labor market in recent months has been one of the most prominent signs that inflation will stay higher for longer.
Historically, a strong job market keeps wages and consumer spending levels elevated, thus fanning inflation and interest rates.
The latest economic data muddies the path forward for Federal Reserve Chair Jerome Powell, who said on April 16 that given the strength of the labor market and progress on inflation so far, its appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us.
The rate-setting Federal Open Market Committee chose to keep the benchmark federal-funds rate steady — at the highest range the US economy has seen in over two decades — when its latest two-day meeting concluded on Thursday.
In an afternoon press conference, Powell downplayed the possibility of further rate hikes as recent economic data has yet build central bankers’ confidence they seek in falling inflation.
On Monday, for example, the World Bank warned that the days of energy and other commodities serving as a deflationary force could be nearing an end, citing geopolitical tensions that have put pressure on demands for oil, industrial metals and other supplies.
Just one day later, the Labor Department said the employment cost index (ECI) — which measures worker compensation and benefits — gained just 1.2% in the first three months of this year.
The reading, which traditionally signals underlying inflation pressures, was also above the 0.9% rise experienced in the fourth quarter of 2023.
The latest warning signs throw further doubt on the Feds ability to tamp inflation down to its 2% goal by the end of the year.
To bring inflation down from its 9.1% peak in the summer of 2022, central bankers issued a string of 11 rate hikes in an effort to cool down the economy, lifting borrowing rates to their current 23-year high, between 5.25% and 5.5%.
April’s CPI is slated to be released on May 15.
When inflation persists as it has, the Fed has historically hiked interest rates even further.
The US will take over Gaza and “own it”, Donald Trump has said.
Speaking alongside Israeli Prime Minister Benjamin Netanyahu at the White House, he said the two million Palestinian people living in the territory, which he described as a “demolition site”, would go to “various domains”.
Asked about deploying US troops to fill a potential security vacuum, the president replied: “We’ll do what is necessary.”
Expanding on plans for the territory, he said the US would “develop it, create thousands and thousands of jobs” and turn it into “something the entire Middle East can be very proud of”.
The president reiterated his suggestion from 25 January that Palestinians could be relocated to Egypt and Jordan – something both countries, other Arab nations including Saudi Arabia, and Palestinian leaders, have rejected.
Palestinians in Gaza could go to countries beyond Jordan and Egypt too, he said.
Asked whether he thought Egypt and Jordan would accept Palestinians, he said he believed they would.
But, he added: “I hope we could do something where they wouldn’t want to go back. Who would want to go back?
“They’ve experienced nothing but death and destruction.”
Saudi Arabia immediately responded, stressing its rejection of attempts to displace Palestinians from Gaza, and insisted it would not establish relations with Israel without a Palestinian state.
Asked on what authority the US could take control of Gaza, Mr Trump told reporters he sees a “long term ownership position” which would, he claimed, bring stability to that part of the Middle East.
“This was not a decision made lightly,” he said.
“Everybody I’ve spoken to loves the idea of the United States owning that piece of land, developing and creating thousands of jobs.”
It would be the “Riviera of the Middle East”.
He continued: “I’ve studied it. I’ve studied this very closely over a lot of months, and I’ve seen it from every different angle.”
He does not believe Palestinians should return to Gaza because it is a “guarantee that they’re going to end up dying”.
He talked about finding a “beautiful area to resettle people, permanently, in nice homes where they can be happy and not be shot and not be killed and not be knifed to death like what’s happening in Gaza”.
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The war, triggered by Hamas carrying out a massacre of 1,200 people and taking 250 others hostage during the 7 October 2023 attacks in Israel, has temporarily stopped since the long-sought ceasefire deal came into effect on 19 January.
More than 47,000 Palestinians have been killed in Gaza since Hamas’s attack, according to local authorities.
Mr Netanyahu, the first world leader to meet Mr Trump since the pro-Israel president’s return to the White House, sat beside the Republican as he answered questions from the press.
Trump relocation call will horrify Palestinians
If President Trump is to be taken at face value then he is set to repeat history.
It would end the prospect of a two-state solution – Israelis and Palestinians living side by side on the same land.
It could also wreck any prospects of diplomatic normalisation between Israel and Gulf Arab states.
Nations like Saudi Arabia wouldn’t stand for such a permanent resettlement and probably wouldn’t trust any resettlement presented as ‘temporary’ – which this is conspicuously not.
The two countries being told to take the people of Gaza – Egypt and Jordan – have firmly refused to do so. The American president seems convinced they will roll over.
Maybe though this is part of Trump’s art of the deal: to suggest something, then not follow through – and present that as a concession down the line.
There’s something else too.
Even if Israeli PM Netanyahu believes it’s a plan that can’t work and could further the cries of ethnic cleansing (it’s notable that he didn’t add his overt support to it alongside Trump) the president’s plan will certainly help him domestically where his future is fragile.
Netanyahu can dangle ‘permanent relocation’ in front of the real hardliners in his government who keep him in power.
Whatever is at play here, the announcement today will horrify Palestinians and it will delight and embolden the hardline elements of Israeli society who have dreamt of a Jewish state free of Palestinians.
‘Plans change with time’
The US president hinted he would seek an independent Palestinian state as part of a broader two-state solution to the decades-long Israel-Palestine conflict.
“Well, a lot of plans change with time,” he told reporters when he was asked if he was still committed to a plan similar to the one he spelled out in 2020 that described a possible Palestinian state.
That plan proposed a series of Palestinian enclaves surrounded by an enlarged Israel, did not have the Palestinian capital in East Jerusalem, but suggested a Palestinian capital on the outskirts of the city.
“A lot of death has occurred since I left and now came back. Now we are faced with a situation that’s different – in some ways better and in some ways worse. But we are faced with a very complex and difficult situation that we’ll solve,” he said.
On the likelihood of getting a permanent ceasefire in Gaza, Mr Trump said: “We are dealing with a lot of people, and we have steps to go yet, as you know, and maybe those steps go forward, and maybe they don’t.
“We’re dealing with a very complex group of people, situation and people, but we have the right man. We have the right leader of Israel. He’s done a great job.”
Mr Trump was also asked whether he should get the Nobel Peace Prize.
He said: “They will never give me a Nobel Peace Prize. It’s too bad. I deserve it, but they will never give it to me.”
A United States Postal Service worker pushes a cart of packages in New York City, on Dec. 4, 2023.
Brendan Mcdermid | Reuters
The U.S. Postal Service said Tuesday it’s temporarily suspending all inbound packages from China and Hong Kong Posts.
The change is effective immediately and will remain “until further notice,” according to an alert posted to the agency’s website. Letters and large envelopes, referred to as “flats,” sent from China and Hong Kong won’t be impacted, the USPS said.
The announcement comes after President Donald Trump on Saturday signed executive orders imposing tariffs on China, Mexico and Canada. Trump on Monday agreed to hold off on imposing 25% tariffs on Canada and Mexico for 30 days, but the 10% tax on goods from China remains.
A provision in the orders eliminates a popular trade loophole, known as “de minimis,” which allows exporters to ship packages worth less than $800 into the U.S. duty free.
Chinese e-commerce firms, including Shein and PDD Holdings‘ Temu, have relied on the de minimis loophole as a way to bypass tariffs, and keep prices low.