United States Economy Gained 266,000 Jobs in April

United States Economy Gained 266,000 Jobs in April

This morning, the United States Labor Department had good and bad news about the nation’s economic recovery. According to the agency’s latest report, the U.S. added 266,000 jobs during the month of April. While any gain in jobs is a good thing, the disappointment comes from the fact that economists had anticipated numbers to reach as high as one million jobs. What’s more, March’s figures were revised down by 146,000, bringing the new total for that month to 770,000. Also notable is that the economy is still down 8.2 million jobs since February 2020. Meanwhile, despite the overall job gains, the unemployment rate also ticked up from 6% in March to 6.1% in April.

Not surprisingly, the industry seeing the greatest number of jobs come back online was leisure and hospitality. That vertical added 331,000 payrolls during the month. More specifically, 187,000 of those jobs were in dining and drinking establishments. The amusements, gambling, and recreation sector also added to the positive number with a gain of 73,000 jobs while businesses in the “accommodation” space added 54,000 jobs.

With the vaccine roll-out continuing and many cities easing restrictions, it was hoped that the month would bring significant job gains. However, reports suggest that some employers are having trouble finding employees to hire. Furthermore, Marketwatch cites a survey that found 60% of small businesses attempted to hire in Aprl. As a result, the U.S. Chamber of Commerce is now calling on Congress to end the program that authorized $300 in extra weekly unemployment benefits. In a statement, the Chamber’s Chief Policy Officer Neil Bradley said, “The disappointing jobs report makes it clear that paying people not to work is dampening what should be a stronger jobs market. One step policymakers should take now is ending the $300 weekly supplemental unemployment benefit. Based on the Chamber’s analysis, the $300 benefit results in approximately one in four recipients taking home more in unemployment than they earned working.”

Other commenting on the mixed jobs report include economist Justin Wolfers who tweeted, “This is a big miss that changes how we think about the recovery.” Similarly, Glassdoor senior economist Daniel Zhao noted, “The report is a bit of a head scratcher that tempers recent projections of a smoothly accelerating economic recovery. By all accounts, the improving public health situation should drive faster job gains, but the report is a humbling reminder that the road to recovery is not a straightforward one in a pandemic.”

Unfortunately, while it was once believed that the economy could see a “V-shaped” recovery, that has turned out not to be the case. Although job figures are still heading in the right direction overall, it seems as though Congress and other leaders will now need to make some difficult decisions regarding how to move forward. Whether they wait until May’s number surface before taking action remains to be seen but we can expect plenty of debate on the topic in the weeks ahead.

Leave a Reply

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories: Amazon.com, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...
Rent Day

Bilt Announces Home Collection Deal for May 2024 Rent Day

For May's Rent Day, Bilt is offering a deal that will allow members to decrease their rent bill while also adding to their home decor. About the Home Collection offer: Bilt has crafted a unique Rent Day offer for May 2024. Through the 1st, when Bilt members redeem their points toward rent payments, they'll receive the same number of points to be used toward Bilt Home Collection items. To take...