SNAPSHOT2 min read

The Goldilocks jobs market continues in the US

The latest US employment data supports the central bank keeping interest rates on hold.



Janet Mui
Global Economist, Cazenove Capital

The US employment report for April reaffirmed a “Goldilocks” jobs market – not too hot to create inflation and not too cold to spark slowdown fears. The unemployment rate fell to the lowest in 49 years while wage growth remained solid but contained.

Nonfarm payrolls rose by an impressive 263,000 in April, well above estimates and after a downwardly revised 189,000 in March.

The unemployment rate surprisingly fell to 3.6% from 3.8%, primarily due to a fall in the labour force. Wage growth remained steady at 3.2% year-on-year and came below estimates despite the fall in the unemployment rate.

This suggests there is still slack in the labour market and that the robust labour market can support US activities without fuelling too much inflation.

Today’s “Goldilocks” report, amongst other recent US activity and inflation data, should support the Federal Reserve’s stance to keep interest rates on hold.


Janet Mui
Global Economist, Cazenove Capital


Federal Reserve
Economic views

For professional advisers only. This site is not suitable for retail clients.

For illustrative purposes only and does not constitute a recommendation to invest in the above-mentioned security / sector / country.

Schroders Investment Management Ltd registration number: 01893220 (Incorporated in England and Wales) is authorised and regulated in the UK by the Financial Conduct Authority and an authorised financial services provider in South Africa FSP No: 48998