The jobs boom do not lead to wage increases. @McTagueJ

May 08, 03:50 AM


(Photo: Workers assemble Volkswagen Golf 6 cars at the Volkswagen factory in Wolfsburg, Germany. Volkswagen and other German automakers are among those driving Germany's economic boom.

Sean Gallup/Getty Images)

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The jobs boom do not lead to wage increases. @McTagueJ

The pace of hiring is beginning to slow. After the longest stretch of uninterrupted job growth on record, many economists believe the pace of hiring will begin to slow as employers increasingly struggle to find new workers. The U.S. economy added 164,000 jobs in April, compared to a monthly average of 191,000 additions over the past year.

The unemployment rate will likely fall further. The jobless rate fell to 3.9% in April after sitting at 4.1% for six consecutive months. The fall was driven in part by the decline in the labor force participation rate, a which some economists worry could signal that people are feeling less optimistic about job prospects. Still, economists expect the unemployment rate will decline further in the months ahead--with the Fed forecasting a 3.6% rate next year--as the labor market continues to tighten.