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Via Townhall:
Marketwatch reports Unemployment rate falls to 17-year low as U.S. adds 164,000 new jobs
"The numbers: The economy generated a solid 164,000 jobs in April to push the unemployment rate below 4% for the first time since Bill Clinton was president, a sign the surging labor market shows no signs ebbing.
"The increase in hiring fell short of the 188,000 forecast of economists polled by MarketWatch, but the shortfall was cushioned by upward revisions that show the U.S. created more jobs in March than originally reported.
"The unemployment rate, meanwhile, slipped to 3.9% after holding at 4.1% for six months in a row. Yet the decline owed to a shrinking labor force and fewer people saying they were unemployed instead of an increase in how many people found work.
"Despite the ultra-tight jobs market, wages for American workers still aren’t rising rapidly. Hourly pay rose 0.1% to $26.84, the government said Friday. The 12-month increase in pay was flat at 2.6% for the third month in a row. The Federal Reserve is likely to view the stable rate of pay as a sign of support for its cautious strategy of raising U.S. interest rates." . . .
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Read: Lack of wage acceleration is main surprise in jobs report, economists sayThat can’t continue forever. Either companies will have to pay workers more — or they’ll have to increase investment to boost production.Opinion: Why you should pay attention to this, and not to the unemployment rateThe Fed would prefer to see higher investment since it would be less likely to lead to inflation. But if the cost of labor and materials continue to rise, the central bank will feel pressure to raise the cost of borrowing in the U.S. more aggressively to prevent an outbreak of inflation.
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