Friday, 07 May 2021 (YJC)_ US hiring slowed to 266,000 added jobs in April, much worse than 1 million expected.
America's employers added just 266,000 jobs last month, sharply lower than in March and a sign that some businesses are struggling to find enough workers as the economic recovery strengthens.
With viral cases declining and states and localities easing restrictions, businesses have added jobs for four straight months, the Labor Department said Friday. Still, the unemployment rate ticked up to 6.1% from 6% in March.
At the same time, optimism about the economic recovery is growing. Many Americans are flush with cash after having received $1,400 federal relief checks, along with savings they have built up after cutting back on travel, entertainment and dining out over the past year. Millions of consumers have begun spending their extra cash on restaurant meals, airline tickets, road trips and new cars and homes.
Most economists expect job growth to strengthen as more vaccinations are administered and trillions in government aid spreads through the economy. Even if another uptick in COVID-19 cases were to occur, analysts don't expect most states and cities to reimpose tough business restrictions. Oxford Economics, a consulting firm, predicts that a total of 8 million jobs will be added this year, reducing the unemployment rate to a low 4.3% by year's end.
With viral cases declining, consumers spending again and more businesses easing restrictions, America's employers likely delivered another month of robust hiring in April, reinforcing the economy's steady rebound from the pandemic recession.
Economists have forecast that the nation added 975,000 jobs last month, according to a survey by FactSet, after adding 916,000 in March, and that the unemployment rate slipped from 6% to 5.8%. The size of such job gains was essentially unheard-of before the pandemic.
Your Comment