Breitbart is reporting today that the number of jobs added to the American economy in April was far below expectations.
The article reports:
The U.S. economy added just 266,000 jobs in April and the unemployment rate ticked up to 6.1 percent, the Labor Department said in its monthly labor assessment Friday, smashing expectations.
This was far below expectations. Analysts surveyed by Econoday had predicted Friday’s report would show between 755,000 and 1.25 million workers added to payrolls in April. The median forecast was for 938,000 and an unemployment rate of 5.8 percent.
The news is not all bad–it’s just not what the economists wanted. They were hoping that the Biden administration would continue the good news of the Trump administration. Based on the policies espoused by the Biden administration, that is a false hope. The unemployment rate in March was 6 percent, so unemployment only went up slightly (not down as predicted). There is, however, another figure that needs to be looked at–the workforce participation rate. The workforce participation rate is the section of working population in the age group of 16-64 in the economy currently employed or seeking employment. That number was 61.5 in March and 61.7 in April. Changes in that number occur gradually, and an upward trend is a good thing.
The article concludes:
In April, 18.3 percent of workers performed their jobs remotely because of the coronavirus pandemic, down from 21.0 percent in the prior month.
The number of people saying they had been unable to work because their employer closed or lost business due to the pandemic declined to 9.2 million, from 11.4 million in the previous month. Among those who reported in April that they were unable to work because of pandemic-related closures or lost business, 9.3 percent received at least some pay from their employer for the hours not worked, little changed
from the previous month.
Among those not in the labor force in April, 2.8 million persons were prevented from looking for work due to the pandemic. This measure is down from 3.7 million the month before.
We are actually moving slowly in a good direction. The question is whether or not that positive economic momentum will continue under President Biden’s economic policies.