2nd LD: U.S. economy adds fewer jobs in April

The U.S. economy added fewer jobs in April than the first three months of this year, with the unemployment rate remaining unchanged from March at 5 percent, said the Labor Department on Friday.

The total nonfarm payroll employment increased by 160,000 in April, far below the market-expected 200,000 and the slowest pace in seven months. From January to March, job gains averaged at 200,000 per month.

The distribution of job growth across industries in April was reasonably similar to recent trends, with manufacturing and mining still facing headwinds but showing somewhat better growth in April compared to the past year, said Jason Furman, chairman of the Council of Economic Advisers of the White House, in a statement on Friday.

The labor force participation rate, the share of the working age population employed or looking for a job, went down to 62.8 percent after rising to 63 percent in March.

Average hourly earnings for all employees increased 8 cents to 25.53 U.S. dollars, following an increase of 6 cents in March. The average hourly earnings have risen by 2.5 percent year on year, higher than the 2.3-percent increase in March.

According to analysts, with the unemployment rate staying at 5 percent, below its pre-recession average of 5.3 percent, fewer job gains would not be a top concern for Federal Reserve officials.

Fed chairwoman Janet Yellen said last year that adding 100,000 jobs a month is enough to absorb new entrants to the labor force.

The U.S. Fed has kept the benchmark short-term interest rates unchanged after it raised the rate last December. Fed officials have forecast two more rate hikes for this year.

Last month, Fed officials noted the job market's improvement, but expressed their concern about the sluggish economy and low inflation. Endi