Payroll growth last month was the weakest since shortly after last summer's hurricanes, the government said Friday, in a report that came in well below Wall Street's expectations.

Employers added 138,000 jobs in April, the Labor Department reported, down from a revised 200,000 in March. Economists surveyed by Briefing.com had forecast a net gain of 200,000 in payrolls.

It was the lowest number of jobs added to the economy since October, when the labor market was still suffering from a two-month slowdown that followed hurricanes Katrina and Rita.

But at the same time the job market remained tight enough last month that unemployment stayed low and wages rose more than expected.

The unemployment rate held at 4.7 percent, matching economists' forecast.

On Wall Street, stocks rose on hopes that the weaker-than-expected labor market might mean the Federal Reserve is not as likely to raise interest rates at its June 29 meeting. Another quarter-percentage point increase is widely expected at the meeting Wednesday.

But the report had one reading that might be of concern to the Fed - average wages rose more than expected. The average hourly wage was up 9 cents, or 0.5 percent, to $16.61. Economists had forecast only a 0.3 percent rise after. The March rise in average wages was also revised higher to a 0.3 percent gain.

One reason that the Fed keeps an eye on employment is concern that a tighter labor market will drive up wages and feed inflationary pressures. Average hourly wages are now up 3.8 percent over the last 12 months, which is more than the 3.4 percent increase in prices paid by consumers over the 12 months ending in March.