More proof that the Democrats, particularly Joe Biden, have no clue what is happening in the US economy. They believe their own lies.
Unemployment rate falls to 49-year low
The U.S. labor market charged ahead in April.
The economy added 263,000 non-farm payrolls for the month, the Bureau of Labor Statistics reported Friday. This topped expectations for 190,000 new positions, according to consensus estimates compiled by Bloomberg. March’s payroll additions were downwardly revised to 189,000, from 196,000 previously.
The unemployment rate fell to 3.6% for the month, the lowest level since December 1969. Consensus economists had anticipated that unemployment would hold at March’s 3.8% rate.
Meanwhile, the labor force participation rate fell slightly from March to 62.8%, but was unchanged from the year prior. The broad U-6 gauge of unemployment – which captures the underemployed as well as those who have ceased looking for jobs and – held at 7.3%, the same level seen in both February and March.
Average hourly earnings rose 0.2% month-over-month and 3.2% year-over-year, the same paces seen in March. Consensus economists had anticipated hourly wages to increase by 0.3% on a monthly basis and 3.3% on an annual basis.
Positions in the manufacturing sector grew by 4,000 in April, reversing a decline of 6,000 seen in March. However, this came in short of the 10,000 new manufacturing positions expected. Manufacturing job creation has been closely watched amid softness in the sector as a whole, with the Institute for Supply Management’s factory gauge falling to a two-year low in April.
The Bureau of Labor Statistics report comes on the heels of mixed employment data from other closely watched labor market indicators. ADP/Moody’s reported earlier this week that private payrolls increased by 275,000 in April, or nearly 100,000 positions more than expected.
However, initial unemployment claims, which had been trending lower, recently rebounded, with Thursday’s latest reading showing new jobless claims rose by 230,000 on a seasonally adjusted basis during the last full week of April.
Meanwhile, the economy on the whole has shown signs of trending higher, based on the much stronger-than-expected reading on first-quarter GDP last week. According to that report, the U.S. economy grew at a pace of 3.2% in the first three months of the year, surging ahead of consensus expectations for 2.3% growth.
Friday’s jobs report comes just two days following the Federal Reserve’s Wednesday latest monetary policy decision and commentary from Fed Chair Jerome Powell – but don’t expect the Fed to be swayed by any gyrations in the headline payrolls number, some analysts said.
“I think the Fed has really moved to the sidelines, because they’re concerned about just keeping the expansion going. If anything, I think what really brings them back into play will be inflation that starts to overheat,” Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said in an interview with Yahoo Finance ahead of the release of the jobs report. “Right now, I think they’re very happy with where the jobs picture is.”
On Wednesday, the Federal Open Market Committee (FOMC) decided to keep key interest rates unchanged at a band of between 2.25% and 2.5%, with Powell subsequently telegraphing that the central bank does not see a “strong case” to change interest rates in either direction at this point.