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April jobs report lower than anticipated; economy gains 266k jobs
The Bureau of Labor Statistics revealed that non-farm payrolls increased 266,000 in April, and the unemployment rate rose to 6.1 percent. NAFCU Chief Economist and Vice President of Research Curt Long analyzed the report in a new NAFCU Macro Data Flash report.
“Job gains in April were well below expectations, and the downward revision to March may reset expectations for how quickly the recovery will proceed through the summer,” said Long. “Many will view the poor returns from last month as confirmation that enhanced unemployment benefits are curtailing labor supply.”
Noteworthy, the March non-farm payrolls increase was significantly higher at 777,000.
Average hourly earnings increased by 21 cents in April. The labor force participation rate rose from 61.5 percent to 61.7 percent.
Results among the major industries were mixed. Leisure and hospitality gained 331,000 jobs, followed by 48,000 jobs in the government sector. Transportation lost 81,000 jobs while professional and business services shed 79,000 jobs. The construction sector saw no change. Additionally, sectors that boomed during the pandemic suffered large losses in April: Delivery services lost 77,000 jobs and grocery store employment dropped by 49,000.
“Female employment fell on the month while job growth among males increased by over 300,000, suggesting that lack of childcare may also be a significant factor. However, NAFCU remains optimistic that the summer will see a broad growth in employment and that the economic recovery is still on track,” concluded Long.
For more up-to-date economic updates from NAFCU's award-winning research team, view NAFCU's Macro Data Flash reports.