US non-farm payrolls beat expectations in April

The US economy created more jobs than expected last month, according to figures released on Friday by the Bureau of Labor Statistics.

Non-farm payrolls rose by 253,000 from March, comfortably beating expectations for 180,000 jump.

However, the data for March was revised down, to show that 165,000 jobs were added, from a 236,000 increase previously. The figures for February were also revised, to show a 248,000 rise, down from 326,000.

The unemployment rate dipped to 3.4% in April from 3.5% in March - below consensus estimates of 3.6% - and average hourly earnings rose 0.5% to $33.36. Analysts had been expecting a 0.3% increase in earnings.

Over the past 12 months, average hourly earnings have increased by 4.4%.

Andrew Hunter, deputy chief US economist at Capital Economics, said the gain in non-farm payrolls "suggests that the labour market remains resilient despite the banking sector turmoil and broader signs of an economic slowdown".

"Nevertheless, that stronger-than-expected gain was offset by sharp downward revisions to previous months, and, in any case, we doubt it will have the Fed reconsidering its plans for a pause given the wider evidence that labour market conditions are cooling," he said.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, said: "For the Fed, this report clearly is not weak enough, even allowing for the downward payroll revisions, to trigger a fundamental rethink. But a continuation of the downward trend in payrolls will soon see the numbers heading into a range in which the Fed can start to back away from its oft-stated position that the labour market is too tight, and that will open the door to lower rates, assuming core inflation continues to soften.

"Right now, policymakers will be relieved that short rates are backing up after this report, given the rally in the past couple days. We’re sticking to our view that the Fed will turn explicitly neutral in June but that the first easing will have to wait until September."