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| US unemployment rate drops to lowest level in six years as 288,000 jobs added | US unemployment rate drops to lowest level in six years as 288,000 jobs added |
| (4 months later) | |
| The US added 288,000 new jobs in April as the unemployment rate fell to 6.3%, its lowest level since 2008, the Bureau of Labor Statistics (BLS) said on Friday. | The US added 288,000 new jobs in April as the unemployment rate fell to 6.3%, its lowest level since 2008, the Bureau of Labor Statistics (BLS) said on Friday. |
| The number of new jobs created was the largest monthly gain in more than two years. The BLS said gains were widespread, led by job growth in professional and business services, retail trade, food services and drinking places, and construction. | The number of new jobs created was the largest monthly gain in more than two years. The BLS said gains were widespread, led by job growth in professional and business services, retail trade, food services and drinking places, and construction. |
| The gains were far better than economists had been expecting. The BLS also revised its figures for February and March. February was revised up from 197,000 to 222,000, and March from 192,000 to 203,000. | The gains were far better than economists had been expecting. The BLS also revised its figures for February and March. February was revised up from 197,000 to 222,000, and March from 192,000 to 203,000. |
| Problem areas remain. The unemployment rates for teenagers (19.1%), black people (11.6%) and Hispanics (7.3%), remain elevated but all dropped slightly last month. | Problem areas remain. The unemployment rates for teenagers (19.1%), black people (11.6%) and Hispanics (7.3%), remain elevated but all dropped slightly last month. |
| The number of long-term unemployed (those jobless for 27 weeks or more) declined by 287,000 in April but still stood at 3.5 million; these individuals accounted for 35.3% of the unemployed. | The number of long-term unemployed (those jobless for 27 weeks or more) declined by 287,000 in April but still stood at 3.5 million; these individuals accounted for 35.3% of the unemployed. |
| The fall in the unemployment rate was also driven in part by a fall in the participation rate – the number of people in the workforce – which dropped to 62.8% from 63.2%. | The fall in the unemployment rate was also driven in part by a fall in the participation rate – the number of people in the workforce – which dropped to 62.8% from 63.2%. |
| The numbers come as the Federal Reserve said the after effects of the unusually frigid winter were wearing off. Winter’s chill on the economy was made clear on Wednesday as the Commerce Department announced gross domestic product (GDP), the broadest measure of economic growth, had risen just 0.1% in the first quarter on an annulaized basis. | The numbers come as the Federal Reserve said the after effects of the unusually frigid winter were wearing off. Winter’s chill on the economy was made clear on Wednesday as the Commerce Department announced gross domestic product (GDP), the broadest measure of economic growth, had risen just 0.1% in the first quarter on an annulaized basis. |
| On the same day the Fed said economic activity had picked up recently after slowing “sharply during the winter in part because of adverse weather conditions”. | On the same day the Fed said economic activity had picked up recently after slowing “sharply during the winter in part because of adverse weather conditions”. |
| In a note to clients Dan Greenhaus, chief strategist at broker BTIG, said: “The very large drop in the unemployment rate largely occurred because the size of the labour force declined by 806,000 (probably related to the expiration of extended unemployment benefits; on this front, there was a fairly large drop in the number of people employed for 27 weeks or more). The actual level of employment rose by just 73,000 according to the survey from which the unemployment rate is derived.” | In a note to clients Dan Greenhaus, chief strategist at broker BTIG, said: “The very large drop in the unemployment rate largely occurred because the size of the labour force declined by 806,000 (probably related to the expiration of extended unemployment benefits; on this front, there was a fairly large drop in the number of people employed for 27 weeks or more). The actual level of employment rose by just 73,000 according to the survey from which the unemployment rate is derived.” |
| He said the report was “quite strong on its face” but beneath the headline data therewere points to mitigate his enthusiasm. | He said the report was “quite strong on its face” but beneath the headline data therewere points to mitigate his enthusiasm. |
| Appearing on the CNBC, Labor Department secretary Thomas Perez touted the strong hiring in the professional and business services sector, which are middle-class and upper middle-class jobs. “These jobs being created are good jobs,” he said. | Appearing on the CNBC, Labor Department secretary Thomas Perez touted the strong hiring in the professional and business services sector, which are middle-class and upper middle-class jobs. “These jobs being created are good jobs,” he said. |
| “I consider 288,000 jobs created to be significant progress,” Perez said. “We are moving in the right direction. You look across the broad range in growth of last month, you look at construction jobs, education and health, professional and business services, these are all middle class and upper middle class jobs.” | “I consider 288,000 jobs created to be significant progress,” Perez said. “We are moving in the right direction. You look across the broad range in growth of last month, you look at construction jobs, education and health, professional and business services, these are all middle class and upper middle class jobs.” |
| In a statement, House speaker John Boehner blasted the Obama administration for a shrinking workforce. | In a statement, House speaker John Boehner blasted the Obama administration for a shrinking workforce. |
| “Earlier this week, we learned that economic growth largely stalled at the start of the year. And while it’s welcome news that more of our friends and neighbors found work in the past month, this report also indicates more than 800,000 Americans left the workforce last month, which is troubling,” said Boehner. | “Earlier this week, we learned that economic growth largely stalled at the start of the year. And while it’s welcome news that more of our friends and neighbors found work in the past month, this report also indicates more than 800,000 Americans left the workforce last month, which is troubling,” said Boehner. |
| The nonfarm payroll report also follows an upbeat survey from ADP, the US’s largest payroll supplier. According to ADP the private sector added 220,000 jobs in the private sector in April. ADP also revised March’s figure to 200,000, the first time since the end of 2012 that the company has recorded two consecutive months of job gains above 200,000. | The nonfarm payroll report also follows an upbeat survey from ADP, the US’s largest payroll supplier. According to ADP the private sector added 220,000 jobs in the private sector in April. ADP also revised March’s figure to 200,000, the first time since the end of 2012 that the company has recorded two consecutive months of job gains above 200,000. |
| Mark Zandi, chief economist of Moody’s Analytics, which helps compile ADP’s report, said: “The job market is gaining strength. After a tough winter employers are expanding payrolls across nearly all industries and company sizes. The recent pickup in job growth at mid-sized companies may signal better business confidence. Job market prospects are steadily improving.” |