Hiring in the United States rebounded in April as employers added a brisk 211,000 jobs, a sign that the economy’s slump in the first three months of the year could prove temporary.
The unemployment rate dipped to 4.4 percent — its lowest point in a decade — from 4.5 percent in March.
The figures suggest that businesses expect consumer demand to rebound after a lackluster first quarter, when Americans increased spending at the slowest pace in seven years, and will need more employees.
Still, average paychecks grew more slowly in April, increasing 2.5 percent over the past 12 months, below March’s year-over-year gain. Typically, employers are forced to pay more as they compete for a smaller pool of unemployed workers. Hourly pay gains are usually closer to 3.5 percent in a strong economy.
Some evidence suggests that economic growth is rebounding in the current April-June quarter, with some economists forecasting that it could top a 3 percent annual rate, compared with the first quarter’s 0.7 rate. Last quarter, consumers spent less in part because of low utility bills during an unseasonably warm winter. That’s likely to prove a temporary restraint.
And the housing market is reaching new heights as home sales and construction march upward even though a limited number of properties are for sale. Sales of existing homes jumped in March to their highest level in more than a decade.