Explore our services

Wealth Planning
Receive a multigenerational wealth plan with personalized strategies and guidance.
Investing
Experience a holistic approach to investing, centered on your goals and priorities.
Lending
Unlock liquidity with a variety of customized lending products, strategies and solutions.
Banking
Access a variety of banking products and services tailored to your needs.
Family wealth platform
Explore our platform of specialized services designed for ultra-high-net-worth clients.

April 2024 jobs report: 175,000 jobs added, lower than forecast

May 06, 2024

The U.S. economy added 175,000 jobs in April, signaling a rebalancing labor market.

Key takeaways

The Bureau of Labor Statistics (BLS) reported that the U.S. economy added 175,000 jobs in April 2024, the slowest jobs gain in six months and below market expectations. The unemployment rate ticked up from 3.8% to 3.9%.
Average hourly earnings eased as well, with the metric falling below 4% year over year (YoY) growth for the first time since June 2021.
While April’s job data was softer than expected, timely initial claims for unemployment insurance data do not suggest a material weakening in the labor market at this junction.
Our strategists believe that the April jobs data should help Fed officials to regain some confidence that inflation can get back to its 2% target over time; it is just going to require some patience.

Contributors

Cristina Dwyer

Analyst, J.P. Morgan Wealth Management

Moderating job growth

The April jobs report indicates the labor market is softening – but other employment indicators suggest there is no imminent weakening in the labor market. 175,000 jobs were added in April, the slowest gain in six months.¹ The report is welcome news for the Fed as it alleviates some inflationary pressures.

March’s nonfarm payroll gains were revised up to 315,000 and February’s nonfarm payroll gains were downwardly revised to 236,000. April’s nonfarm payroll gains bring the three-month average employment gain to 242,000 from 269,000 in March, indicating job growth is moderating but still strong.²

This chart shows the monthly nonfarm payroll employment change in thousands from May 2023 to April 2024.

Industry breakdown

Payroll gains in April were more broadly distributed than the past two months. Private payrolls rose by 167,000, driving most of the gains. Jobs in goods-producing industries rose 14,000 while service-sector jobs rose by a much stronger 153,000, reflecting resilient demand for services industries. Jobs in leisure and hospitality rose by a milder 5,000.³

Employment in construction and government industries also rose, but more modestly in April. Government jobs rose by a softer-than-expected 8,000 jobs in April, the smallest monthly gain since December 2022.⁴

Unemployment rates and growth

The overall unemployment rate rose to 3.9% in April from 3.8% the prior month. Although the rate ticked slightly higher, it still marks the 27th consecutive month the jobless rate remained below 4%, indicating that the labor market remains too tight.⁵ The rise in the unemployment rate was driven by an increase in the unemployment rate of older workers. The rate for prime-age workers was unchanged and the rate for younger workers fell.

Meanwhile, timely initial claims for unemployment insurance also do not suggest an imminent material weakening in the labor market at this junction:

There were 208,000 jobless claims during the week ending on April 27, the same number as the prior week.
There were 1,774,000 continuing jobless claims, also the same number as the prior week, during the week ending on April 20.⁶

However, other data points suggest the labor market is slowly easing:

The preliminary reading of the April average hourly earnings report, an important measure for inflation, increased by a softer-than-prior 0.2% month-over-month.⁷ This pushes the year-over-year (YoY) rise to 3.9%, marking the first annual reading below 4% since June 2021.⁸
There was a decline in the average weekly hours worked in April, another sign that labor demand is moderating, which should help move inflation closer to the Fed’s 2% goal.
March’s job openings fell to 8.49 million from 8.81 million the prior month, according to the BLS Job Openings and Labor Turnover Summary. This lowered the job openings rate to 5.1%,⁹ the lowest rate since January 2021.

These points highlight that the labor market isn’t as strong as it was earlier this year and is trending in the right direction from the Fed’s perspective.

This chart shows the unemployment rate and average hourly earnings percentage change from January 2018 to April 2024.

Rate implications

Overall, the April jobs report paints a picture of a labor market that is slowing but not weakening imminently. While the Fed welcomes signs of a more balanced labor market, they are being patient and have indicated they are in no hurry to lower interest rates until they see sustained, compelling evidence of slower inflation. Slower wage growth will contribute to lower inflation, but the Fed will also look to some of the stickier components, such as shelter cost, for indications of decline.

At the April Federal Open Market Committee (FOMC) meeting, the Fed held its benchmark overnight interest rate steady at 5.25% to 5.5% for a sixth straight meeting.¹⁰ Fed Chair Jerome Powell reiterated the Fed will continue to make decisions on a meeting-to-meeting basis and remain fully data-dependent.

The Consumer Price Index (CPI) slightly rose to 3.5% YoY in March, an uptick from the 3.2% rise in February, but down from over 9% in 2022.¹¹ Despite the slight uptick, the overall downtrend in inflation suggests the economy could avoid a hard economic landing while successfully bringing inflation down to the Fed’s goal.

The April inflation report is set to be released May 15 and will play a significant role in the Fed’s interest rate decision-making process at its next FOMC meeting. However, it’s important to note that the Fed’s preferred measure of inflation, the Personal Consumption Expenditures (PCE) deflator, will be released May 31 and will likely play a larger role in their decision-making.

References

Bureau of Labor Statistics. “The Employment Situation—April 2024.”

Ibid.

U.S. Department of Labor, “Unemployment Insurance Weekly Claims – May 2, 2024.”

Bureau of Labor Statistics. “The Employment Situation—April 2024.”

Ibid.

Bureau of Labor Statistics, “March Job Openings and Labor Turnover Summary.” (April, 2024)

10.

Federal Reserve. “Federal Reserve issues FOMC statement.”

11.

Bureau of Labor Statistics. “Consumer Price Index – March 2024.”

Connect with a Wealth Advisor

Our Wealth Advisors begin by getting to know you personally. To get started, tell us about your needs and we’ll reach out to you.

Connect now

IMPORTANT INFORMATION

This material is for informational purposes only, and may inform you of certain products and services offered by J.P. Morgan’s wealth management businesses, part of JPMorgan Chase & Co. (“JPM”). Products and services described, as well as associated fees, charges and interest rates, are subject to change in accordance with the applicable account agreements and may differ among geographic locations. Not all products and services are offered at all locations. If you are a person with a disability and need additional support accessing this material, please contact your J.P. Morgan team or email us at accessibility.support@jpmorgan.com for assistance. Please read all Important Information.

GENERAL RISKS & CONSIDERATIONS. Any views, strategies or products discussed in this material may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. Asset allocation/diversification does not guarantee a profit or protect against loss. Nothing in this material should be relied upon in isolation for the purpose of making an investment decision. You are urged to consider carefully whether the services, products, asset classes (e.g. equities, fixed income, alternative investments, commodities, etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated with an investment service, product or strategy prior to making an investment decision. For this and more complete information, including discussion of your goals/situation, contact your J.P. Morgan representative.

NON-RELIANCE. Certain information contained in this material is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material, which are provided for illustration/reference purposes only. The views, opinions, estimates and strategies expressed in this material constitute our judgment based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in this material in the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of JPM, views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward-looking statements should not be considered as guarantees or predictions of future events.

Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request. J.P. Morgan and its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.

Legal Entity and Regulatory Information.

J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.

Bank deposit accounts and related services, such as checking, savings and bank lending, are offered by JPMorgan Chase Bank, N.A. Member FDIC.

This document may provide information about the brokerage and investment advisory services provided by J.P. Morgan Securities LLC (“JPMS”). The agreements entered into with JPMS, and corresponding disclosures provided with respect to the different products and services provided by JPMS (including our Form ADV disclosure brochure, if and when applicable), contain important information about the capacity in which we will be acting. You should read them all carefully. We encourage clients to speak to their JPMS representative regarding the nature of the products and services and to ask any questions they may have about the difference between brokerage and investment advisory services, including the obligation to disclose conflicts of interests and to act in the best interests of our clients.

J.P. Morgan may hold a position for itself or our other clients which may not be consistent with the information, opinions, estimates, investment strategies or views expressed in this document. JPMorgan Chase & Co. or its affiliates may hold a position or act as market maker in the financial instruments of any issuer discussed herein or act as an underwriter, placement agent, advisor or lender to such issuer.

Check the background of our firm and investment professionals on FINRA's BrokerCheck

To learn more about J. P. Morgan’s investment business, including our accounts, products and services, as well as our relationship with you, please review our J.P. Morgan Securities LLC Form CRS and Guide to Investment Services and Brokerage Products.

This website is for informational purposes only, and not an offer, recommendation or solicitation of any product, strategy service or transaction. Any views, strategies or products discussed on this site may not be appropriate or suitable for all individuals and are subject to risks. Prior to making any investment or financial decisions, an investor should seek individualized advice from a personal financial, legal, tax and other professional advisors that take into account all of the particular facts and circumstances of an investor's own situation.

This website provides information about the brokerage and investment advisory services provided by J.P. Morgan Securities LLC ("JPMS"). When JPMS acts as a broker-dealer, a client's relationship with us and our duties to the client will be different in some important ways than a client's relationship with us and our duties to the client when we are acting as an investment advisor. A client should carefully read the agreements and disclosures received (including our Form ADV disclosure brochure, if and when applicable) in connection with our provision of services for important information about the capacity in which we will be acting.

INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED

J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.

Please read additional Important Information in conjunction with these pages.

Key takeaways

Contributors

Moderating job growth

U.S. nonfarm payroll employment

Nonfarm payroll employment in thousands

U.S. unemployment rate vs. average hourly earnings

Unemployment rate and average hourly earnings percentage change

References

Connect with a Wealth Advisor

SHOW MORE

Related insights