America added 75,000 fewer jobs than expected in April - this is why it's GOOD for the economy

Stocks jumped Friday morning as the US labor market finally showed some signs of cooling in a new report.

Employers added 175,000 jobs in April while the unemployment rate rose to 3.9 percent, up from 3.8 percent in March, the Labor Department reported.

Analysts said it was a 'goldilocks number' - not too hot but not too cold which could help to bring down inflation.

The Dow Jones Industrial Average was up 382 points as of Friday morning while the S&P 500 was up 50 points.

The news was welcomed by President Biden who noted unemployment has remained under 4 percent for 27 consecutive months.

'The great American comeback continues,' he said. 

But presidental rival Donald Trump blasted on social media: 'HORRIBLE JOB NUMBERS.' 

Employers added 175,000 jobs in April while the unemployment rate rose to 3.9 percent, up from 3.8 percent in March, the Labor Department reported

Stocks jumped on Friday morning after data showed the US labor market is finally showing signs of cooling

Analysts had expected growth of 250,000 jobs, according to Briefing.com. 

While hiring has decelerated, the number of jobs added in April remains well above 100,000 - the average level that some economists say is needed to keep the unemployment rate steady.

For now, the latest figures could prove encouraging for policymakers looking to cool the economy gradually.

Apart from an easing in hiring figures, officials are also looking to a slowdown in pay gains as they seek to bring inflation lower over the long run.

In April, wage growth came in at 0.2 percent - from 0.3 percent in March -- on a monthly basis, according to the Labor Department.

From a year ago, average hourly earnings were 3.9 percent higher in April -- slipping below 4.0 percent for the first time since 2021.

Commenting on the report, Brent Kenwell, investment analyst at e Toro, said: 'The April jobs report appears to be a goldilocks print for investors. 

'The April jobs report doesn’t create an urgent concern for the labor market or the economy, and it found a way to thread the needle between being soft enough, but not too weak.'

The Dow Jones Industrial Average was up 382 points as of Friday morning while the S&P 500 was up 50 points

Former President Donald Trump took to Truth Social to slam Biden for the latest figures

Analysts are hoping the news could pave the way for interest rate cuts later in the year.

The Fed maintained the benchmark lending rate at a 23-year high this week, citing a lack of further progress in lowering price increases.

But Powell said the central bank is ready to respond to an unexpected weakening in the jobs market.

Economist Rubeela Farooqi of High Frequency Economics. said the latest data 'supports the view that rates cuts -- and not hikes -- are the base case scenario for the Fed this year.'