The upcoming April jobs report from the Labor Department will provide critical insights into whether the U.S. economy is experiencing a temporary slowdown or heading into a longer-term downturn. Economists predict an increase of 133,000 nonfarm payrolls, down from 228,000 in March. This would still be sufficient to maintain the unemployment rate around 4.2%. However, a lower-than-expected figure could exacerbate concerns amid recent negative economic indicators. Mark Zandi of Moody’s Analytics suggests that a figure around 150,000 would be acceptable, but anything below 100,000 could signal deeper issues. Investors have already faced a GDP contraction of 0.3% annualized in Q1 and weak private payroll data. Wage satisfaction has dropped to its lowest since November 2021, and federal layoffs remain a concern. The report, due at 8:30 a.m. ET, will also include wage information, with expectations for a 0.3% monthly rise in average hourly earnings. — new from CNBC
