The unemployment rate south of the border fell to 3.9% in April, an 18-year low, even as non-farm payrolls rose by just 164,000, according to a report Friday from the U.S. Bureau of Labor Statistics.
Economists had expected payroll growth of 192,000 and the jobless rate to drop by one-10th of a percent to 4%. The official jobs tally initially showed an increase of an upwardly revised 135,000 in March.
Stock market futures moved lower following the release, while government bond yields also drifted downward.
The closely watched average hourly earnings number rose by four cents, equating to a 2.6% annualized gain, a bit off the pace from the previous month. The average work week was unchanged at 34.1 hours.
Another measure of unemployment that includes discouraged workers and those holding part-time positions for economic reasons fell to 7.8%, the lowest since July 2001. Unemployment for blacks fell to a fresh record-low of 6.6%, down three-10ths of a point.
The drop in the unemployment rate came amid another decline in the labour force participation rate to 62.8%, the lowest since January. The number of people counted as out of the labor force swelled by 410,000 to 95.74 million.
