U.S. Unemployment Rate Falls to 4.2 Percent While Wage Growth Stays Flat

The unemployment rate declined to 4.2 percent while average hourly earnings remained unchanged, according to the latest report. The combination of a lower jobless rate and steady wages indicates the labor market is not adding to inflationary pressures.

Kevin Warsh, the Federal Reserve chairman, said the data give policymakers flexibility to address inflation without immediate concern over wage-driven price increases.

The report showed the unemployment rate ticked down to 4.2 percent. Average hourly earnings stayed steady during the same period. Officials noted that the absence of wage acceleration reduces one potential source of broader price increases. The data arrive as the central bank continues its focus on containing inflation.