International Business: Manufacturing and restaurants drive strong job growth in US – Gulf Digital News

International Business: Manufacturing and restaurants drive strong job growth in US – Gulf Digital News

WASHINGTON: US job growth increased more than expected in April as manufacturers boosted hiring, underscoring the economy’s strong fundamentals despite a decline in output in the first quarter.

Though the Labour Department’s closely watched employment report yesterday showed a moderation in wage gains last month, wage price pressures are likely to continue to build amid record job openings. About 363,000 people left the labour force in April, pulling down the participation rate from a two-year high and potentially worsening worker shortages.

The Federal Reserve is trying to tighten monetary policy to bring down high inflation without tipping the economy into recession. The economy contracted last quarter under the weight of a record trade deficit.

“The firm payroll data is good in that it confirms that the labour market is strong and suggests the US economy may be sufficiently resilient to deal with the forthcoming monetary tightening,” said Seema Shah, chief strategist at Principal Global Investors. “For the Fed, there is nothing in today’s report to suggest they can take their foot off the brake.”

The survey of establishments showed non-farm payrolls rose by 428,000 jobs last month. But the economy created 38,000 fewer jobs in February and March than previously reported. It was the