Unemployment Falls Below 4%

New data shows the U.S. unemployment rate dropped to 3.8% in April. Over 280,000 jobs were added, beating forecasts. This points to a strong labor market, even as interest rates remain high.

Where the Jobs Are

Healthcare, hospitality, and construction saw the most growth. Tech jobs also bounced back slightly after months of layoffs. Wages rose by 0.4%, which may help with inflation.

Why This Matters

A strong job market means more consumer spending. This supports the economy but could make the Federal Reserve cautious about cutting interest rates. Economists now predict a rate pause rather than a cut.

Investor Reactions

Markets responded positively. The S&P 500 rose slightly after the report. Bond yields also moved higher, signaling confidence in economic growth.

What to Watch

Keep an eye on inflation and future job reports. If employment keeps growing, we might avoid a recession altogether.