Economy Gains 164,000 Jobs in April; Unemployment Little Changed at 3.9%

Posted by | May 04, 2018 | Uncategorized | No Comments

By Kenneth Quinnell Economy Gains 164,000 Jobs in April; Unemployment Little Changed at 3.9%

The U.S. economy gained 164,000 jobs in April, and unemployment was little changed at 3.9%, according to figures released this morning by the U.S. Bureau of Labor Statistics.

The pace of hiring is slowing. And as the labor force participation rate drops, economists worry that Americans are feeling less optimistic about their job prospects and are giving up their searches entirely.

This continues the recovery of the labor market at a tempered pace, which means the Federal Reserve’s Federal Open Market Committee should continue to let the economy grow and not raise interest rates.

To boost hiring, President Donald Trump and Congress should commit to a multitrillion federal jobs and infrastructure package.

In response to the April jobs numbers, AFL-CIO Chief Economist William Spriggs tweeted:

Over the year, average hourly pay is up 2.6%. This is in line with the report this week that compensation costs were up 2.7%. So, with theses modest numbers, and the slowdown in GDP for the 1st Quarter, @federalreserve interest rate hikes need to stay off the table. @AFLCIO

— William E. Spriggs (@WSpriggs) May 4, 2018

After showing strong convergence with white labor force participation, the Black labor force participation rate takes a dip. That fall in Black LFPR helped lower the Black unemployment rate from 6.9 to 6.6%. @AFLCIO @rolandsmartin @CBTU72 @APRI_National @dchometownboy pic.twitter.com/1rfnK5z2jF

— William E. Spriggs (@WSpriggs) May 4, 2018

After climbing up from its depths in July 2011, the share of Blacks employed hits a snag in April and falls back from 58.4% to 57.8% giving context to the fall in the Black unemployment rate from 6.9 to 6.6% The fall in unemployment rate is from a drop in participation. @AFLCIO pic.twitter.com/j0EbZThXZ9

— William E. Spriggs (@WSpriggs) May 4, 2018

The share of Hispanics employed continues its recovery from its depths in May 2011. Last month it rose from 62.5 to 63.2% helping push the Hispanic unemployment rate down from 5.1 to 4.8% @AFLCIO pic.twitter.com/R2KUrtDBiE

— William E. Spriggs (@WSpriggs) May 4, 2018

In the long fight over whether workers would return to the labor market, Re-entrants to the labor market are now as important to the unemployment rate as are those who are on permanent layoff. @AFLCIO

— William E. Spriggs (@WSpriggs) May 4, 2018

Long term unemployment continues to fall, good sign, and now 63.9% of unemployed workers have been out for less than 14 weeks. But, we are still not down to pre-Great Recession levels of long term unemployment. @AFLCIO @NelpNews

— William E. Spriggs (@WSpriggs) May 4, 2018

In a sign of continued fiscal austerity at the state level, public sector jobs in states continues its recent fall, down 7,000 in April (4,700 in state education) @afscme @AFLCIO pic.twitter.com/4UKdl1CBnT

— William E. Spriggs (@WSpriggs) May 4, 2018

Another reason the @federalreserve needs to show caution, growth in payrolls for motor vehicle manufacturing is stalling as sales falter. Last month employment edged down 900. @UAW @AFLCIO @DetroitGearhead

— William E. Spriggs (@WSpriggs) May 4, 2018

Another reason the @federalreserve needs to watch the real economy, the slowdown in auto sales showing in retail trade employment numbers, a drop in motor vehicle dealers and parts of 1,000 in April. @AFLCIO

— William E. Spriggs (@WSpriggs) May 4, 2018

Key in the debate, are workers coming back: workers unemployed in March are staying in the labor force (discouragement down) they were 9% more likely to find a job in April than drop out of the labor force. @AFLCIO pic.twitter.com/laoVSiRSFs

— William E. Spriggs (@WSpriggs) May 4, 2018

Second key in the debate, are workers coming back: workers not in the labor force in March were 2.62 times more likely to be employed when they re-entered/entered in April. @AFLCIO pic.twitter.com/wwiG3EZhyi

— William E. Spriggs (@WSpriggs) May 4, 2018

Last month’s biggest job gains were in professional and business services (54,000), manufacturing (24,000), health care (24,000) and mining (8,000). Employment changed little over the month in other major industries, including construction, wholesale trade, retail trade, transportation and warehousing, information, financial activities, leisure and hospitality, and government.

Among the major worker groups, the unemployment rate for teenagers (12.9%), blacks (6.6%), Hispanics (4.8%), adult men (3.7%), whites (3.6%), adult women (3.5%) and Asians (2.8%) showed little or no change in April.

The number of long-term unemployed (those jobless for 27 weeks or more) was little changed in April and accounted for 20% of the unemployed.

Kenneth Quinnell
Fri, 05/04/2018 – 12:14

Source: AFL-CIO

Leave a Reply

Your email address will not be published.