Based on the April NFP report recently released by the Department of Labor shows that the U.S. economy is only able to create fewer jobs than economists expect. This raises doubts about economic recovery.
The April reading was in stark contrast to the March employment figures which recorded rapid growth following driven by stronger economic growth and aggressive vaccination programs.
The Department of Labor said only 266,000 NFP jobs were added as of the middle of last month, compared to expectations for a number under 1 million. In addition, the March pay rise was revised by 146,000 with a final reading of 770,000.
The unemployment rate rose to 6.1% from 6.0% in April. Analysts expect it to drop to 5.8%.
The US dollar index, which measures the greenback against other currencies, continued to plunge 0.54% to an exchange rate of 90.420 as of 09.00 p.m.
The Dow Jones futures index also fell by 40 points.
The jobs report in April became the focus of the market as it became a determinant of whether the Federal Reserve would maintain its zero rate policy and other easing measures in the face of economic recovery or not.
Given market concerns about inflation, some groups on Wall Street believe a strong job market report could prove an early sign for the Fed that the economy is recovering.
