Unemployment rate hits 9% in mixed April labor reportPosted by: RJ and Makay on May 06, 2011 Tagged in: Recession , mixed data , manufacturing , government employment , first quarter growth , economic recovery , consumer confidence , April unemployment
 
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The U. S. economy added more jobs than expected in April, but unemployment increased for the first time in six months, rising to 9%, from 8.8% in March.
Nonfarm payrolls rose by 244,000 as the private sector, which accounts for 70% of the workforce, saw in increase of 268,000 jobs. It was the strongest gain in 5 years according to the Labor Department.
The mixed data caught most analysts by surprise. Economists surveyed by the Dow Jones News Wire had expected job payrolls to rise by 185,000 and the jobless rate to hold steady at 8.8 %.
The job gain for March was revised to 221,0000 from a previously reported 216,000.
Two years into the economic recovery, jobs gains have still not made up for lost ground during the recession of 2008 and first half of 2009. The past year has seen 1.5 million new jobs added to the economy, but the U.S still has 7 million fewer jobs than before the recession.
Other troubling signs in the mixed report point to unemployment rising sharply in the last week of April to its highest number since last summer. High gas prices at the pump continue to drag on consumer confidence.
The employers survey indicated continued gains in manufacturing, mining and services. Manufacturing added 29,000 jobs following a gain of 22,000 in March. The services sector saw gains in retail trade and professional and business services.
Government employment fell by 24,000 mainly due to state and local government budget restraints.
A broader measure of the unemployment rate, which includes people who have stopped looking for work or settled for part time jobs, rose to 15.9 %, from 15.7% in March.
A slowdown in first quarter growth is expected to restrain hiring at companies in the near-term.
Sources:
Unemployment rate rises (http://online.wsj.com/article/SB10001424052748703992704576306843829385166.html). Wall Street Journal, May 6, 2011
Strong jobs report shows U.S. economy gaining steam (http://www.nytimes.com/2011/05/07/business/economy/07jobs.html). New York Times, May 6, 2011
