US Job Market Beats Expectations in April with Unemployment Rate Falling to 3.4%

US employers increasing hires and raising workers' pay signaled a continued strong job market in April that could keep interest rates high. US non-farm payrolls rose 253,000 in April. However, the data in March was revised down to 165,000. Some economists believe that the labour market is exaggerating the health of the economy, as there is a divergence between consumer spending and job growth, while labour productivity is continuing to decline. In addition, job growth is increasingly concentrated in the leisure and hospitality sector and in state and local government, where employment remains below pre-pandemic levels. Although, the risk of a recession is increasing and the hiring picture could change rapidly, the general consensus is now that the economy will continue to create jobs, at least until the fourth quarter.