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Live U.S. Finance and Payment Updates: Student Debt Cancellation, $2,753 Monthly Check, Tax Refund, Recession, Unemployment Rate

The unemployment rate in the United States is expected to fall to 3.5% in April

The US unemployment rate likely fell to its pre-pandemic low of 3.5% in Aprilwhile job growth moderated to a still robust pace amid widespread labor shortages, underscoring the challenge the Federal Reserve faces in reining in high inflation.

The Labor Department’s closely watched jobs report released on Friday is also expected to show wages rose solidly last month and highlight the economy’s strong fundamentals despite a decline in gross domestic product in the first quarter.

“Consumers have money to burn and businesses are trying to hire people, but labor shortages are getting worse, on the contrary“, said Sung Won Sohn, professor of finance and economics at Loyola Marymount University in Los Angeles. “I think we are seeing the beginning of a wage price spiral, and it will be a difficult problem to solve. , even for the central government. bank.”

Non-farm payrolls likely increased by 391,000 jobs last month after rising by 431,000 in March, according to a Reuters survey of economists. This would mark a slowdown from the average gain of 562,000 jobs per month in the first quarter and breaking an 11-month streak of payroll gains topping 400,000. Estimates ranged from as little as 188,000 jobs added to 517,000.