US job growth rebounded in April and the unemployment rate fell to near a seven-year low, the government reported Friday, suggesting the economy may be recovering after a weak period at the beginning of the year. The Labor Department said employers added 223,000 jobs last month as gains in service-sector jobs offset weakness in mining, where the plunge in oil prices has reduced energy production. The unemployment rate fell 0.1 percentage point to 5.4 percent, the lowest rate since May 2008, six months into the Great Recession. However, March job creation was revised to show a gain of only 85,000 jobs, down from an initially reported 126,000 and the smallest since June 2012. Still, the solid April report suggested underlying strength in the economy at the start of the second quarter after growth slowed sharply in the January-March period. Gross domestic product (GDP) growth stalled in the first quarter and may have actually contracted amid severe weather, port disruptions, a strong U.S. dollar, a widening trade deficit, and deep spending cuts by energy firms. The Federal Reserve (Fed) is likely to delay raising interest rates for at least a few more months, given the obstacles to sustained growth. The U.S. central bank has kept a key rate near zero since December 2008. The drop in unemployment pushed it close to the 5.0 to 5.2 percent range that most Fed officials consider consistent with full employment.
