Unemployment Rate Rises In April, U.S. Economy Adds 244k Jobs

WASHINGTON (By Lucia Mutikani) - U.S. employment increased more than expected in April as private companies created jobs at the fast pace in five years, pointing to underlying strength in the economy, even though the jobless rate rose to 9.0 percent.

Nonfarm payrolls rose 244,000 last month, the most in 11 months, the Labor Department said on Friday. The private sector accounted for all of the job gains last month, with payrolls rising 268,000, the largest rise since February 2006.

The gain in overall payrolls, above economist' expectations for a 186,000 increase, was supportive of views the economic recovery would regain speed this quarter after stumbling in the first three months of the year on high commodity prices.

Data for the previous two months was revised to show 46,000 more jobs were added. Gains in April marked seven straight months of net job creation, but remained too little to make much of dent on the pool of 13.7 million Americans out of work.

The unemployment rate backed away from a two-year low of 8.8 percent. It is derived from a separate survey of households which showed a decline in employment and a moderate rise in the size of the labor force.

The unemployment rate had dropped a full percentage point since November and the latest rise will strengthen the Federal Reserve's resolve to stick to its ultra-easy monetary policy stance.

The Fed last month signaled it was in no hurry to start withdrawing its massive stimulus for the economy, even as other major central banks around the world have begun to raise interest rates.

High gasoline and food prices clipped U.S. economic growth in first quarter. The economy grew at a 1.8 percent annual rate after expanding at a 3.1 percent clip in the final three months of last year.

The economy has recovered only a fraction of the more than 8 million jobs lost in the 2007-2009 recession. Job growth of between 250,000 and 300,000 a month is needed to make significant strides in reducing unemployment.

WEAKNESS SEEN TRANSITORY

Details of the April employment report were generally upbeat with the exception of government employment, which contracted for a sixth straight month in April, shedding 24,000. The bulk of gains in payrolls last month were in the private services sector, which added 224,000 after 194,000 jobs March.

Employment in the goods-producing industries increased 44,000, with construction payrolls climbing by 5,000 and manufacturing hiring gaining 29,000.

The employment report also showed the average workweek unchanged at 34.3 hours for a third straight month and no sign of wage inflation, with average hourly earnings rising a mere 3 cents.

(Reporting by Lucia Mutikani; Editing by Neil Stempleman)

Copyright 2010 Thomson Reuters. Click for Restrictions.

Comments

[utbes01]

01:17 PM on 05/09/2011

So let's see here: Even though it is not mentioned in this story - McDonald's hired 62,000 new employees. Here is how it is analyzed in the main stream media:

Burger flipping jobs + Democrat in White House = Recovery

Burger flipping jobs + Republican in White House = Jobless Recovery

Which is it???

[Nanny12]

08:53 PM on 05/08/2011

Most of these jobs that was created is under 40 hours and paying $8 per hour.These companies getting all the big tax breaks,and hiring people to work under 40 hours, so you have no benefits.Calculate your pay check $8 x 37 =$296,plus they have to take out tax,so you coming home with $200 and whatever every week.Now tell me which,politician is living on a pay check like that.They telling you to cut back,what can you cut back from a pay check like that?

[nana4g]

10:08 AM on 05/08/2011

There are many contributing factors, well known to us all, for the economic decline of this country and one boomerangs onto the other and they are all dependent upon each other and everyone and everything is affected.

However, I distinctly recall, and have seen in one documentary report recently on the rise of bin Laden, that one of his goals was the financial ruin of this country, saying that we would go broke fighting against him, etc.

I believe the previous Administration played right into his hands on that one. Misdirected wars, bungled strategy, billions of dollars spent on ineffective strategies....what revenue we did have, and even revenue not on the books, was squandered away.

In my opinion, this connection needs to be made and reviving this economy with the patriotic duty of banks, financial systems, corporations, including Koch Bros., taxing, political parties, need to be called out and the connection needs to be made that this is part and parcel of defeating bin Laden and terrorism. Playing political games with our economy is not in the best interest of our country and could be construed as perpetrating our own war against ourselves.

Greed will always be with us. But, deliberately withholding solutions to score political points is unforgivable, especially when the goal of the enemy was to weaken us economically. That is not a "fix" the SEALS can accomplish. That is something only banks, corporations, political parties, Wall Street, etc, can do.

[PotomacOracle]

07:50 PM on 05/08/2011

You wrote:"Greed will always be with us. But, deliberate­ly withholdin­g solutions to score political points is unforgivab­le, especially when the goal of the enemy was to weaken us economical­ly."

The enemy is within for the most part. National and international bankers have been destroying this nation with their greed, fraud and hypocrisy.

As the late Congressman Wright Patman, Chairman of the House Committee on Banking and Currency for over 16 years, said,

"I have never yet had anyone who could, through the use of logic and reason, justify the Federal Government borrowing the use of its own money....I believe the time will come when people will demand that this be changed. I believe the time will come in this country when they will actually blame you and me and everyone else connected with the Congress for sitting idly by and permitting such an idiotic system to continue.”

Unfortunately, most American's don't give chip because they don't understand what's happening to them and this society. Worse yet, Geithner and Bernanke are fully aware that if government spent money into the economy, rather than lending it, we could have everything a society needs to prosper and progress.

However, they work for national and international bankers who siphon off our income surpluses in income taxes so that they can continue to receive perpetual unearned income.

Bernanke, epecially, knows debt free currency could happen immediately but he, like Congress and the Administration fear the Money Powers.

[utbes01]

01:19 PM on 05/09/2011

You are correct. Greed WILL always be with us. And, sooner or later - the government & the entitlement programs will run OUT of other people's money.........

[bluereality909]

07:23 PM on 05/07/2011

I feel they should identify whether these so called jobs are full time (40 hrs) or part time and how many are temporary positions. It is very misleading to the reader, for we all know that a part time job for 12 hrs a week at $8 is a joke. The majority of these jobs are more than likely McDonalds and Wal Mart, which only employ am extreemly small percentage of full time positions and let the taxpayer pick up the tab for section 8 housing, food stamps and medicaid. These Multi billion dollar corporations do nothing to alleviate this burden. In fact in Wal Marts case, they steer their employees to these tax payer benefits intentionally. We have our Ivy League graduates to thank for steering American corporations towards part time employment. These wealthy rich kids will never see a poor day in their lives, but have committed so many American families into poverty.

[trumbull desi]

02:33 PM on 05/09/2011

I know it's anecdotal evidence but my company ($20B+) is hiring, and and really good wages. I just hired two people in my department.

[bluereality909]

03:07 PM on 05/09/2011

Nice, did you require the (2) you hired to have a 4 year degree and unemployed for less than 3 months? This is the new discrimination at this point in history from what I read.

[Lolie Culley]

07:00 PM on 05/07/2011

The Republicans are out of touch. Boehner and Cantor wake up men, look what you contributed to our country. POVERTY

[lohu]

03:22 PM on 05/07/2011

Meant fought against the taxes being raised.

[et q]

06:46 PM on 05/07/2011

can you say Freudian, dum bass?...when the gurus of finance(roll my eyes) are done...Job gains are calculated exactly the same way as when GeoBush lost them....bottomline

[lohu]

03:22 PM on 05/07/2011

The republicans should be thanked because we fought for the taxes of people making over 250,000 to be raised. The increase in the hiring is a result of this.

[PrincessAnnie]

08:30 PM on 05/07/2011

Yeah, nothing says "trickle down" like a McJob.

[AdamWest1313]

07:24 AM on 05/08/2011

You do realize how low our average tax rate is historically, don't you?

[lohu]

03:19 PM on 05/07/2011

Yep, the tax hike that the democrats wanted didn't come through, and now small businesses feel better about hiring.

[AdamWest1313]

07:25 AM on 05/08/2011

If this were the case, then many jobs should have been created under Bush. They weren't.

[Trepasky]

02:02 PM on 05/09/2011

How come it didn't work during the GW 8 years?
ANd the last 2-3 years?

Causation and coincidence are different.

[rossandsheila]

01:34 PM on 05/07/2011

Those 200,000 were new McDonald's employees.Good job Obama!

[lohu]

03:19 PM on 05/07/2011

You should thank the republicans because we fought for the rich and small businesses not getting a tax hike.

[Tom Hendricks]

11:50 AM on 05/07/2011

This is the solution for these times. The government is at a stalemate and people need the work. That leaves corporations to take the lead. National Hiring Day #3 is coming up, but the media has decided not to talk about it, though they talk about jobs daily. Corporations - including the media - need to show some patriotism, and talk about National Hiring Day idea, and then hire.
National Hiring Day #3 is suggested for May 19, 2011. This is a day that corporations are encouraged to hire new employees. Corporations are called on to put patriotism first and help their country in hard times. Those corporations that cannot hire, are asked to stop firing for that month. This was suggested by the Dallas media / art zine Musea.

[deb0214]

11:41 AM on 05/07/2011

From Republican/Teabagger controlled Florida Legislature, the 3rd highest unemployment rate in the nation:

From St. Pete Times: "Deal struck to further cut Florida unemployment benefits"

"Out-of-work Floridians will receive fewer state benefits while businesses pay less tax under a controversial proposal approved Friday by a divided Legislature.

The deal, which Gov. Rick Scott is expected to sign into law, immediately cuts unemployment benefits by 11.5 percent.

Jobless Floridians would continue to receive a maximum payment of $275 per week, among the lowest of any state in the country. But they would be paid for no more than 23 weeks, instead of 26.

Cutting the number of weeks was a victory for Scott and the Republican House. The bill, HB 7005, passed along party lines in both the Senate and the House.

The bill also creates a sliding scale that cuts and adds weeks of benefits based on the unemployment rate. Unemployment compensation would drop to as low as 12 weeks if the average unemployment rate drops to 5 percent or lower. A week would be added for every 0.5 percent the jobless rate climbs.

The change also cuts by 10 percent the business tax that pays for unemployment benefits.

The bill also makes it easier for a business to show employees were fired for cause, preventing them from receiving benefits."

Our "elected public servants" at work attacking the people, the unemployed !

[jtabs]

01:36 PM on 05/07/2011

It's class warfare and the sooner we understand it the faster we can react.

[BocaMom]

11:40 AM on 05/07/2011

Thank God that President Obama extended the Bush Tax Cuts! Without them, unemployment would be over 10%!

[Joseph Joyal]

11:15 AM on 05/07/2011

OK adding jobs but unemployment is up. DAH lossing job is still out pacing adding jobs.
Stop the Bull

[AdamWest1313]

07:26 AM on 05/08/2011

The likely reason for the sudden increase in unemployment is due to the number of people getting jobs. This leads many people who had previously given up on looking for jobs to go back into the work force, increasing the unemployment.

[Joseph Joyal]

11:32 AM on 05/09/2011

No the increase came from people filling first time claims for umemployement.
That were the increase came from.

[pam45]

10:43 AM on 05/07/2011

Where are those private sector jobs and what industries increased their payrolls? If unemployment has increased, the article should explain why such as within certain sectors. These are just basic questions that should be answered since this is an important piece of news for public consumption!

[Justeden]

09:35 AM on 05/07/2011

a quarter of the jobs are at Mc Donald's

[Joseph Joyal]

11:15 AM on 05/07/2011

and the rest at walmart

[jbjg24m]

01:18 PM on 05/07/2011

or Burger King

[Rodger leMonde]

01:42 PM on 05/07/2011

Beats hell out of starving.
The same people that say take any job if you're out of work are the first to get snarky about low level jobs.