Employers added 236,000 last month, the lowest in two years. This, however, doesn't mean that the job market is cool now, it is still historically strong. This slowdown in hiring shows that the rate hikes' effect is being seen in the economy and the job market. A slowdown in hiring also indicates a lowering level of economic activity and might mean the Fed is getting closer to the end of its rate hikes.
The banking crisis also has an impact on this month's job market. The crisis means that some businesses might find it harder to borrow, potentially leading to layoffs.
The hiring in the service industry helped make up for layoffs in tech and finance.
Fed said that it would watch other indicators closely to decide the indicators for their rate decision in May, but this data strengthens the case for a pause in the rate hikes, combined with rising commodity prices and the banking crisis.
Comments