Signs the US labour market is cooling have raised hopes that the worst inflation problem in decades is improving, but economists warn further action is still needed from the Federal Reserve to fully contain price pressures.
Data released on Friday bolstered the view that the world’s largest economy, while still resilient, is gradually losing some of its momentum. US jobs growth in March remained strong and the unemployment rate fell to a multi-decade low, but the latest figures show the pace of hiring is decelerating and wage growth easing.
Combined with data earlier this week, which also reflected dwindling demand for workers, economists say the slowdown that the US central bank has been trying to engineer since last year via sharply higher borrowing costs is under way.