IBJNews

U.S. gains 288,000 jobs as rate falls to 6.3 percent

Back to TopCommentsE-mailPrintBookmark and Share

U.S. employers added a robust 288,000 jobs in April, the most in two years, the strongest evidence to date that the economy is picking up after a brutal winter slowed growth.

The Labor Department also said Friday that the unemployment rate sank to 6.3 percent, its lowest level since September 2008, from 6.7 percent in March. But the drop occurred because the number of people working or seeking work fell sharply. People aren't counted as unemployed if they're not looking for a job.

In addition to the burst of hiring in April, employers added more jobs in February and March than previously estimated. The job totals for those two months were revised up by a combined 36,000.

Employers have now added an average of 238,000 jobs the past three months, up from 167,000 in the previous three.

"Not only is job growth continuing, but it is accelerating," said Patrick O'Keefe, director of economic research at the accounting and consulting firm CohnReznick.

Sal Guatieri, an economist at BMO Capital Markets, said the surge in hiring "signals that American companies are optimistic the economy will snap back smartly after the largely weather-related slump in the first quarter."

Hiring last month was broad-based and included higher-paying jobs: Manufacturing gained 12,000, construction 32,000. Professional and technical services, which include accounting and engineering positions, added 25,100 jobs. The number of government jobs grew 15,000, mostly at the local level.

One sour note: Average hourly pay was unchanged at $24.31. Average wages have risen just 1.9 percent in the past 12 months, just above the annual inflation rate of 1.5 percent.

The fall in the unemployment rate was due mainly to the exodus of people who stopped looking for work. O'Keefe said he was surprised by the 806,000 drop in the number of Americans either with a job or seeking one. But he noted that that figure is volatile from month and month and that during the first three months of 2014, nearly 1.3 million people had poured into the labor force.

The jump in hiring comes after a spate of other data showed that the economy is improving. Consumers are ramping up spending, businesses are ordering more goods and manufacturers are expanding. The strengthening numbers show that harsh snowstorms and frigid cold in January and February were largely to blame for the economy's scant growth at the start of the year.

The economy barely expanded from January through March, eking out an annual growth rate of just 0.1 percent, down from a 2.6-percent rate in the final three months of 2013. Americans spent more last quarter on utilities and health care, but their spending on goods barely rose. Businesses also reduced spending, and exports fell.

Still, other data indicate that the economy was already rebounding in March and probably improved further in April. Consumers bought more cars and spent more at shopping malls. Overall consumer spending soared in March by the most in 4-1/2 years.

Spending is up partly because Americans earned a bit more, and confidence has improved from the bleak winter months. Incomes rose 0.5 percent in March, the government said, the most since August.

And a private survey showed that manufacturing activity accelerated in April for a third straight month.

Businesses are also investing more in machinery and equipment after cutting back in those areas in January and December. Business orders for manufactured goods jumped in March, the government said last week.

All told, the positive news has led most economists to forecast a strong rebound in economic growth — to a 3.5-percent annual rate in the current April-June quarter. And growth should reach nearly 3 percent for the full year, up from 1.9 percent in 2013, they expect.

ADVERTISEMENT

  • I know I shouldn't feed the trolls, but...
    1) I'm sorry that you're unable to find a job...however, it seems that hundreds of thousands have been able to do just that while you sit on the IBJ's website and complain about it. Have you considered that perhaps your job troubles are because of your shortcomings and not that of the government? 2) The government is "making business impossible"? And yet, big oil continues to make monstrous profits (regardless of the state of the Keystone Pipeline), Wall Street is as profitable as ever, and business are continuing to hire as the economy improves. Quit towing the right-wing line and do some of your own thinking. The economy is obviously improving, whether you like it or not.
  • Dead on
    You are so right! The government is making business impossible with regulations and keeping opportunities down for purely political reasons - Can you say Keystone Pipeline!!!
  • Numbers
    Let's face it the economy sucks! I cannot find anything that pays a damn, and I am not the only one. The number of people who are frustrated and underemployed is off the charts. The government has failed us by creating an unhealthy business climate at the national level.

    Post a comment to this story

    COMMENTS POLICY
    We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
     
    You are legally responsible for what you post and your anonymity is not guaranteed.
     
    Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
     
    No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
     
    We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
     

    Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

    Sponsored by
    ADVERTISEMENT

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
     
    Subscribe to IBJ
    1. I am also a "vet" of several Cirque shows and this one left me flat. It didn't have the amount of acrobatic stunts as the others that I have seen. I am still glad that I went to it and look forward to the next one but I put Varekai as my least favorite.

    2. Looking at the two companies - in spite of their relative size to one another -- Ricker's image is (by all accounts) pretty solid and reputable. Their locations are clean, employees are friendly and the products they offer are reasonably priced. By contrast, BP locations are all over the place and their reputation is poor, especially when you consider this is the same "company" whose disastrous oil spill and their response was nothing short of irresponsible should tell you a lot. The fact you also have people who are experienced in franchising saying their system/strategy is flawed is a good indication that another "spill" has occurred and it's the AM-PM/Ricker's customers/company that are having to deal with it.

    3. Daniel Lilly - Glad to hear about your points and miles. Enjoy Wisconsin and Illinois. You don't care one whit about financial discipline, which is why you will blast the "GOP". Classic liberalism.

    4. Isn't the real reason the terrain? The planners under-estimated the undulating terrain, sink holes, karst features, etc. This portion of the route was flawed from the beginning.

    5. You thought no Indy was bad, how's no fans working out for you? THe IRl No direct competition and still no fans. Hey George Family, spend another billion dollars, that will fix it.

    ADVERTISEMENT