U.S. job growth exceeds expectations in April

U.S. employers added significantly more jobs than forecast in April while wage growth moderated, a combination economists described as the most favourable reading of the year for the soft-landing scenario. Payroll gains were broad-based across services and construction.

Average hourly earnings rose at the slowest annual pace since 2021, easing pressure on the central bank ahead of its June meeting. Labour-force participation among prime-age workers touched a two-decade high, suggesting supply rather than cooling demand is doing the adjustment work.

Markets responded by trimming the probability of further tightening to near zero. Attention now turns to whether the productivity gains that accompanied recent hiring can be sustained through the second half.