05
April 2024
US unemployment rate slightly higher at 3.90%
Adriaan Pask
Chief Investment Officer, PSG Wealth
Event
The US economy added 303 thousand jobs in March 2024 taking the unemployment rate 3.80% lower on an annual basis.
- The number of unemployed people fell by 29 thousand to 6.4 million, while the number of employed individuals fell by 498 thousand to 161.5 million.
- The U-6 unemployment rate, which also includes people who want to work, but have given up searching and those working part-time because they cannot find full-time employment, eased slightly to 7.30% from the 7.40% recorded in February 2024.
The Impact
| Latest | Previous | Change | |
| Population | 268 million | 267 million | Increase of 182 000 |
| Test | Test | Test | |
Wall Street was trading higher on Friday after the latest jobs report pointed to a strong labour market.
- As a result,the US Dollar Index (DXY) was up 0. 49% to trade at 104.63 points on Friday.
- The US 5-year and 10-year Treasury yield rose to 4.35% and 4.36%, respectively while the 30-year Treasury yields was up 4.51% at 16h00.
Labour force participation comparison between April 2024 and March 2024
Source: US Bureau of Labour Statistics
The Assessment
The report indicates that labour market conditions are strengthening, which increases the likelihood that the US Federal Reserve (Fed) could cut rate soon. We have seen markets pull back their expectations from a forecasted six cuts for the year to three currently.
- The next US unemployment rate release date is scheduled for Friday, 3 May 2024.