US economy continues to strengthen as joblessness nears 18-year low
Investors will be on tenterhooks for today’s US Labor Department report, which will detail how many jobs were created in the month of April.
Economists expect the US economy to have added approximately 190,000 jobs last month—almost double March’s below-average figure of 103,000. If realised, the jobs forecast for April may well push America’s unemployment rate down to 4%—its lowest point in 18 years.
With economic growth expected to continue to put downward pressure on unemployment, expectations that America’s central bank will hike interest rates will also strengthen if today’s jobs report meets expectations.
Perhaps more visibly, expect the US president to trumpet a strong jobs report as evidence of a stronger economy and, as a result, evidence of his economic stewardship.
However, the trend is far from secure. Geopolitical risks, particularly trade tensions between the US and China and the potential for intensified conflict between US partners and Iran, continue to cloud the economic horizon.
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