The U.S. Bureau of Labor Statistics (BLS) announced that the number of non-farm payrolls in the U.S. increased by 115,000 in April. This exceeded market expectations of a 65,000 increase. The unemployment rate was 4.3%, which matched market expectations (4.3%). The non-farm payrolls index, released by the U.S. Department of Labor, is an official indicator that includes changes in employment in both the private and government sectors. The non-farm payrolls index and the unemployment rate are data referenced by the U.S. Federal Reserve when making interest rate decisions. If employment indicators are good, such as a high number of employed people and a low unemployment rate, the Fed may consider raising or freezing interest rates to prevent overheating. If employment indicators are poor, such as a low number of employed people and a high unemployment rate, the Fed may consider lowering interest rates to stimulate the economy.
