"We have realized that there were even more workers on the sidelines than we previously thought", said Martha Gimbel, an economist at Indeed.com, a job-search site.
Average hourly pay in the private sector rose 2.6% year-on-year to $26.84 while the average hourly wage in the private sector increased by only 0.1% over the month.
These included professional and business services (up 54,000 jobs), manufacturing (up 24,000) and health care (up 24,000).
And although millennials constitute 35 percent of America's workers, they're more likely than previous generations to have attended college - and less likely to have picked up a trade at vocational school.
The drop of two-tenths of a percentage point in the unemployment rate from 4.1 percent in March pushed it to a level last seen in December 2000 and within striking distance of the Fed's forecast of 3.8 percent by the end of this year. Americans are getting back to work as weekly unemployment insurance claims are hovering at their lowest levels in over 45 years, and more than 2.6 million Americans have stopped collecting food stamps since the start of the Trump Administration.
The Federal Reserve is likely to view the stable rate of pay as a sign of support for its cautious strategy of raising US interest rates. The rate for African-Americans - 6.6 percent - is the lowest on record since 1972. "It's a tight labor market, and it's a tide that's now lifting everyone". Consumer confidence has improved over the past year.
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The average workweek was unchanged at 34.5 hours last month. There has been an increase in reports of employers, especially in the construction and manufacturing sectors, struggling to find qualified workers.
The ECI report showed wages rising at their fastest pace in 11 years during the period.
The trend reflects a decline in mass layoffs. That includes almost 800,000 jobs added since the President signed the Tax Cuts and Jobs Act into law. It stands to reason that wage growth will continue to accelerate as the untapped portion of the labor pool continues to evaporate.
The American jobs boom continued into April but a long-awaited pay boost for employees failed to materialise, dampening expectations that the Federal Reserve will be forced to raise interest rates more aggressively this year.
As the US economy continues to improve at an unexpected pace, Americans are spending their biweekly checks on $62-a-barrel crude oil, screenings of "Avengers: Infinity Wars", downloads of Drake's "God's Plan", and 13.5 million new PCs a quarter. The National Association of Realtors said that homes sold at a solid annual pace of 5.6 million in March, even though the number of houses for sale has plunged.
Information for this article was contributed by Jim Puzzanghera of the Los Angeles Times; by Josh Boak of The Associated Press; and by Katia Dmitrieva of Bloomberg News.