US job growth beats forecasts for a second month as unemployment holds at 4.3%

The US economy added 115,000 jobs in April, beating economists’ forecasts for the second consecutive month, according to data from the US Bureau of Labor Statistics.

The unemployment rate was unchanged at 4.3%.

Revisions to earlier figures mean job growth averaged 48,000 over the past three months, roughly in line with the estimated “breakeven” pace needed to absorb new entrants to the workforce.

US stocks responded positively to the report. The S&P 500 rose 0.8%, while the Dow Jones Industrial Average ended flat.

Economists cited strength in retail as well as transportation and warehousing. The report also showed mixed signals elsewhere, including slower wage growth and signs of an overall contraction in the jobs market, with fewer working-age people looking for work.

The data has reinforced expectations that the Federal Reserve may keep interest rates on hold as it seeks to curb inflation. Some analysts expect hiring to slow later in the year and unemployment to edge higher, which could increase the likelihood of rate cuts.