U.S. employment grew at its slowest pace in more than two years last month, with those slim gains almost entirely in health care and government, pushing the unemployment rate slightly higher.

The sluggish growth held wage growth in check, suggesting that the economic slowdown that began a year ago is having a damping effect on underlying inflation.

This should offer some comfort to U.S. Federal Reserve officials who are widely expected to hold interest rates steady next week.

Nonfarm payrolls increased 88,000 in April, its smallest gain since November 2004, after growing 177,000 in March and 90,000 in February, the U.S Labor Department said today. Previous reports showed job growth of 180,000 in March and 113,000 in February.

The unemployment rate rose to 4.5% from 4.4%, as economists had expected.

The jobs data suggest the Fed will hold interest rates steady at 5.25% for a seventh-straight time when it meets next week.