US job growth rebounds modestly; unemployment rate hits 3.9 percent

The increase in the rate of growth of jobs in the United States is less than that was expected in the month of April. On the other hand, the rate of unemployment came down to about a seventeen and a half year low of 3.9 percent as some jobless Americans left the labor force. On Friday, the closely monitored employment report by the Labor Department of the United States of America shows that wages had barely risen in the previous month which could actually ease concerns regarding the pressures of inflation that are building up is more likely to keep the Federal Reserve on a slow path of lightening of the monetary policy.

On Friday, the labor department of the United States confirmed that nonfarm payrolls rose by about 164,000 jobs in the previous month. The data for the month of March was revised up for showing rising payrolls for about 135,000 jobs instead of about 103,000 jobs which was reported previously. This particular amount of jobs was still the fewest in six months of time and followed an outsized gain of about 324,000 jobs in the month of February. Meanwhile, in the months of March and April due to the extreme cold weather, the job growth was held back which is presently moderating as the labor market hits full employment. There has been an increase in the reports of employers particularly in the fields of manufacturing and construction since these sectors are actually struggling to find workers who are qualified.

In the month of March, the drop of two tenths of a percentage point in the rate of unemployment from 4.1 percent in the month of March pushing it to a level that was previously seen in the month of December 2000 which was within the striking range of the forecast done by the federal department of about 3.8 percent by the end of this year. In six months of time, this was the first time that the rate of jobless individuals dropped. On the other hand, in the month of April, about 236,000 people left the labor force. The rate of participation of the labor force or simply the proportion of working age Americans who has a job or is looking for a job fell to about 62.8 percent in the previous month from about 62.9 percent in the month of March.

January 16, 2022 - 03:52
Posted in: