U.S. Adds 290K Jobs, But Unemployment Hits 9.9%
Updated at 6:38 p.m. EDT
More confident employers stepped up job creation in April, expanding payrolls by 290,000, the most in four years. The jobless rate rose to 9.9 percent as people streamed back into the market looking for work.
The hiring of 66,000 temporary government workers to conduct the census helped overall payroll growth last month. However, private employers - the backbone of the economy - boosted jobs, too. They added a surprisingly strong 231,000 positions last month, also the most since March 2006, the Labor Department reported Friday.
Business services added 80,000 jobs. Construction: 14,000. Manufacturing: 44,000. In all the economy has now added more than a half-million jobs since December, reports CBS News business correspondent Anthony Mason.
"Clearly companies have a newfound confidence in the future of the economic recovery and on the part of their own business prospects," said Joel Naroff, president of Naroff Economic Advisors. "The broadbased job gains are an indication that businesses are feeling more comfortable about expanding their work forces," he said.
The unemployment rate rose from 9.7 percent in March to 9.9 percent in April, mainly because 805,000 jobseekers - perhaps feeling better about their prospects - resumed their searches for work.
Many economists have predicted the unemployment rate would rise as people come back into the labor force. The jobless rate hit 10.1 percent in October, a 26-year high. The rate could climb back up to the 10 percent range in the months ahead, Naroff said.
Friday's employment report sketched out a picture of a healing jobs market and an economy picking up momentum in the early spring. The improvements, however, were taking place before the stock market plunged this week on concerns that the European debt crisis could spread. There are fears the crisis could make companies more cautious about hiring in the future, economists warned.
Obama: Job Growth Shows Policies are Working
President Barack Obama hailed the increase in jobs as further evidence of an improving U.S. economy. Mr. Obama said Friday that controversial steps by his administration have helped the nation pull out of a serious recession. He was alluding to acts such as last year's stimulus bill.
But he said the nation still has a lot of work to do to get more people back to work.
The surprisingly high number of jobs added in April offered the latest evidence that businesses are feeling more confident in the recovery. Consumers increased their spending in March by the largest amount in five months. Factory production grew in April at the fastest pace in nearly six years and demand grew briskly for a variety of services in that same month.
Job gains in April were widespread. Manufacturers, construction companies, retailers, professional and business services, education and health services, leisure and hospitality, and government all showed gains. Among the weak spots: transportation and warehousing, and information companies, which all cut jobs last month.
Also encouraging: The employment picture in both February and March turned out to be stronger than previously thought. Payrolls grew by 230,000 in March, better than the 162,000 first reported. And, 39,000 jobs were actually added in February, an improvement from the previous estimate of 14,000 losses.
All told, 15.3 million people were out of work in April.
Counting people who have given up looking for work and part-timers who would prefer to be working full time, the so-called underemployment rate rose to 17.1 in April. That's close to the record high of 17.4 percent in October and shows just how difficult it is for jobseekers to find work.
But across the economy, the list of the long term unemployed is still getting longer. A record 6.7 million people, have been without a job now for six months or more. These people made up 45.9 percent of all unemployed people, also a record high.
Hiring isn't expected to be robust enough anytime soon to lower the unemployment rate much. Economists think it will remain above 9 percent by the November midterm elections. That could make Democratic and Republican incumbents in Congress vulnerable.
Just 21 percent of Americans consider the economy in good condition, according to an Associated Press-GfK Poll conducted April 7-12.
Nationwide, average hourly earnings edged up to $22.47 in April, from $22.46. Lackluster wage gains are a big reason consumers are still hesitant to spend lavishly, making for a more subdued economic recovery.
For employers to boost hiring significantly, the economy would need to grow at an annual rate of 6 percent to 8 percent a quarter, rather than the 3.2 percent pace logged in the first three months of this year, economists say. Such growth would mean shoppers were spending much more freely. That would give companies confidence that sales gains would last.
That scenario isn't likely.
High unemployment and sluggish wage gains are likely to prevent consumers from going on spending sprees any time soon. Small businesses, which usually help drive job creation during recoveries, are having trouble getting loans. That tight credit is crimping their ability to expand operations and hire.
Europe's debt crisis will probably dampen demand for U.S. exports. And the debt crisis may continue to weigh on markets. Thursday's stock market plunge - the Dow Jones industrial average dropped nearly 1,000 points before recovering two-thirds of its losses - introduced fresh uncertainties.
Many economists think it will take until at least the middle of the decade to lower the unemployment rate to a more normal 5.5 percent to 6 percent.
CBS/AP More confident employers stepped up job creation in April, expanding payrolls by 290,000, the most in four years. The jobless rate rose to 9.9 percent as people streamed back into the market looking for work.
The hiring of 66,000 temporary government workers to conduct the census helped overall payroll growth last month. However, private employers - the backbone of the economy - boosted jobs, too. They added a surprisingly strong 231,000 positions last month, also the most since March 2006, the Labor Department reported Friday.
Business services added 80,000 jobs. Construction: 14,000. Manufacturing: 44,000. In all the economy has now added more than a half-million jobs since December, reports CBS News business correspondent Anthony Mason.
"Clearly companies have a newfound confidence in the future of the economic recovery and on the part of their own business prospects," said Joel Naroff, president of Naroff Economic Advisors. "The broadbased job gains are an indication that businesses are feeling more comfortable about expanding their work forces," he said.
The unemployment rate rose from 9.7 percent in March to 9.9 percent in April, mainly because 805,000 jobseekers - perhaps feeling better about their prospects - resumed their searches for work.
Many economists have predicted the unemployment rate would rise as people come back into the labor force. The jobless rate hit 10.1 percent in October, a 26-year high. The rate could climb back up to the 10 percent range in the months ahead, Naroff said.
Friday's employment report sketched out a picture of a healing jobs market and an economy picking up momentum in the early spring. The improvements, however, were taking place before the stock market plunged this week on concerns that the European debt crisis could spread. There are fears the crisis could make companies more cautious about hiring in the future, economists warned.
Obama: Job Growth Shows Policies are Working
President Barack Obama hailed the increase in jobs as further evidence of an improving U.S. economy. Mr. Obama said Friday that controversial steps by his administration have helped the nation pull out of a serious recession. He was alluding to acts such as last year's stimulus bill.
But he said the nation still has a lot of work to do to get more people back to work.
The surprisingly high number of jobs added in April offered the latest evidence that businesses are feeling more confident in the recovery. Consumers increased their spending in March by the largest amount in five months. Factory production grew in April at the fastest pace in nearly six years and demand grew briskly for a variety of services in that same month.
Job gains in April were widespread. Manufacturers, construction companies, retailers, professional and business services, education and health services, leisure and hospitality, and government all showed gains. Among the weak spots: transportation and warehousing, and information companies, which all cut jobs last month.
Also encouraging: The employment picture in both February and March turned out to be stronger than previously thought. Payrolls grew by 230,000 in March, better than the 162,000 first reported. And, 39,000 jobs were actually added in February, an improvement from the previous estimate of 14,000 losses.
All told, 15.3 million people were out of work in April.
Counting people who have given up looking for work and part-timers who would prefer to be working full time, the so-called underemployment rate rose to 17.1 in April. That's close to the record high of 17.4 percent in October and shows just how difficult it is for jobseekers to find work.
But across the economy, the list of the long term unemployed is still getting longer. A record 6.7 million people, have been without a job now for six months or more. These people made up 45.9 percent of all unemployed people, also a record high.
Hiring isn't expected to be robust enough anytime soon to lower the unemployment rate much. Economists think it will remain above 9 percent by the November midterm elections. That could make Democratic and Republican incumbents in Congress vulnerable.
Just 21 percent of Americans consider the economy in good condition, according to an Associated Press-GfK Poll conducted April 7-12.
Nationwide, average hourly earnings edged up to $22.47 in April, from $22.46. Lackluster wage gains are a big reason consumers are still hesitant to spend lavishly, making for a more subdued economic recovery.
For employers to boost hiring significantly, the economy would need to grow at an annual rate of 6 percent to 8 percent a quarter, rather than the 3.2 percent pace logged in the first three months of this year, economists say. Such growth would mean shoppers were spending much more freely. That would give companies confidence that sales gains would last.
That scenario isn't likely.
High unemployment and sluggish wage gains are likely to prevent consumers from going on spending sprees any time soon. Small businesses, which usually help drive job creation during recoveries, are having trouble getting loans. That tight credit is crimping their ability to expand operations and hire.
Europe's debt crisis will probably dampen demand for U.S. exports. And the debt crisis may continue to weigh on markets. Thursday's stock market plunge - the Dow Jones industrial average dropped nearly 1,000 points before recovering two-thirds of its losses - introduced fresh uncertainties.
Many economists think it will take until at least the middle of the decade to lower the unemployment rate to a more normal 5.5 percent to 6 percent.
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Like all such 'messages' they avoid the issues and try to blame this administration's failures on others.
To their list of failures you can add 'failure to accept responsibility for the mess you are making.'
The health care bill stinks and everyone knows it. Except for the pre-existing conditions language (which everyone wanted) it is garbage and does nothing to control health care costs. The economy stinks. Obama has made it worse. We all know it. Ask any small business owner. Ask any of the 15 million Americans out of work.
Obama gets his Peace Prize just after our sending troops into a place we will never overcome, transform, or tame. Bush did finish that war. But it started again as soon as we pulled-back. Like they always do, local tribal leaders return and start over again. They always will. All Obama has done is ensure more needless bloodshed. He knows nothing of war. He's an idiot.
The world is laughing at Obama. Read the major EU newspapers - Obama is a joke. Don't take my word for it - read them! (you can read things other than WH talking points, right?).
The groundswell of anger and rejection of Obama's failed agenda are obvious. Dems runnng home (or afraid to even return home) and dropping-out all over the place.
You ain't seen nothing yet. This fall will blow you away.
All those crackheads and welfare deadbeats won't tun out 'cause Obama is already elected. And the college kids - well they already helped elect him too, and they will be busy protesting tuition hikes and getting loaded. And the independents and moderates who were duped by his teleprompter magic are either angry or unwilling to admit they even voted for him. You can bet they will turn out...
America is on to this sham and now it's our turn for CHANGE. And the pathetic dinosaur media that cuddles up to Obama and licks his feet - well they are all going broke because Fox has more viewers than all of them combined. Because Fox is the only network willing to tell the truth about this administration. And the truth is filled with corruption, sleazy characters, bribes, lies, deception, and Chicago-style politics. Notice how Obama is even trying to muzzle the anti-Obama media? Trying to stop free speech! That's how desparate he is. Obama: "Media and free speech are OK as long as they don't say anything bad about me."
He knows he's finished. Nothing left but smiles, finger pointing and "Now let's be clear....."
So enjoy the few months of 'glory' that remain.
And this post isn't hateful or angry - it is simply the truth.
So bring on the Suzie-repeated-over-and-over again short little sentences - and ipost's products of Kool-Aid and brainwashing.
Nothing new there. 'New' comes this fall.
I request that you stop re-transmitting Rush Limpbaugh propaganda on here. It all sounds alike. Start thinking for yourself.
Do not even get me started about transparency. Republicans lied to the American people to get us into at least one war.
Lobbying too was out of control.
The Afganistan war is actually the one war that can be called a war of necessity and not of choice. So we need to finish responsibly what the Republicans have started.
Aren't we all glad that the unemployment rate is not 30%? Without any intervention it likely would be. And it was Bush who started doling out billions. Even he understood the hole we were in.
The private sector is beginning to hire again as people get their confidence in the economy back. That means the stimulus is working, if slower than we hoped for.
The health insurance bill was tainted by two things. One, much disinformation from republican propaganda. They were caught lying multiple times. Two, Obama's naivety that he could actually work with the republicans, who were hell bent on destroying his every initiative. As a result, they managed to inject a lot of disinformation into the discussion and the American people just wanted it over with.
It was the Republicans that managed to 'lead' us from a budget surplus to a huge budget deficit. So much for being 'conservatives against government spending'.
Already, Obama has succedded in moving us away from the edge of the precipice. That is a pretty good accomplishment for any president. Had we gone over the cliff, it would be a looong climb back to the top. Is that what you are wishing for?
Got news for you: the mainstream of Americans have rejected Republicans' FAILED ideology once. That ideology is still the same. I have faith in the American people that they will see through the lies and reject it again, come November.
'mr integrity' failed to address a single point I made in my last post. Each one has been front page news within the past 12 months. All I hear from 'mr integrity' is insults and hope-a-dope lines. Like I said - I request mr integrity try posting something of interest based on facts - and please point out which specific item in my last post was in error and why. Or, if you are unable, perhaps just as well you not respond to this post. Better not to fabricate, or spout more hope-a-dope- teleprompter nonsense.
Be a contributor rather than an antagonist.
This administration claimed it would reform Washington and all we have seen is lobby influence, union influence, and even big oil influence. Same old thing - if not more than before. Not to mention the millions from GS and other banks to congress and Obama. So much for that promise.
We were promised 'transparency' and we see closed-door/back-room meetings, closed session wgere dems-only are allowed to craft bills, and a record rejection of information (FOIA) requests - way more than Dubya!
We were promised our fighting men and women would come home. From Iraq - maybe - (since Bubya all but ended it before he left office). But 'Nobel Peace Prize winner Obama' is scaling up in Afghanistan and has Predator Drones blowing people up all over Pakistan. So much for that promise. And Afghanistan is proving to be a real tough nut to crack.
He promised unemploument under 8% if we let him waste nearly a trillion on 'stimulus'. We have all seen where that money went, and how many jobs it 'created.'
His SOU address included a promise to shift focus from an unpopular health bill (still unpopular since it passed) but he didn't He kept on stumping for it for months - and still does. We are told "you will learn to like it." Reminds me of what Stalin said to the people he marched off to the Gulags.
He promised no tax increases on the middle class - but he has already raised my health care costs, and if anyone thinks his administration can finish the term w/o massive tax increases please explain it to the rest of us. Obama would love to pass a national sales (VAT) tax. Tell me how that will stimulate new jobs? His defecit spending threatens our economy and our prosperity. If unchecked it will result in steep inflation, government default, o possibly complete economic collapse. This from our own financial experts and ecomomists.
All he has accomplished is to expand the role and cost of government in any way he possibly can. There is only one solution Obama has for any problem we face: more government control over what we can and cannot do, more defecit spending, more taxes, less freedom of choice, and the ideology that "Americans don't know what they need - so the government's job is to tell them - and if needed, to ram it down their throats." Democracy progressive-style.
Got news for you: it is being rejected by the mainstream - November will reflect this. Americana still have 'hope' but they have rejected this 'change.'
Republicans love preaching to people about personal responsibility. But they are notorious for not accepting any blame for their own mess-ups. What gigantic HYPOCRITES!
But you will not fool the American people!
There is no way you can convince us that in the 8 years of running the country, you could not have prevented this. Only your FAILED ideology and lust for political power got in the way of common sense and economics.
"Hey genius from NM, the Europeans get 6 week vacation time -- not 6 months -- and have shown to be much more productive and happier than American workers, plus they have universal health care with better results!"
________________________________
Wrong. Most EU states begin with 6 weeks and many get extra time over traditional holidays, etc. Ever call a business person in the EU? The most common answer-message is "I am on holiday and will be returning in XXXX weeks." Also, some have less than a 40 hr week. Their productivity is dismall. Spain, Portugal and several other EU states are following Greece and are very close to defaulting. The poor economics of the EU are a result of having followed an Obamanomics program for decades - as a result they are all going broke. Also, they implemented 'chemical management reform' several years ago, and many EU states have 'cap-n-trade' efforts underway which have hurt them in terms of economics and done nothing - repeat - nothing to 'help climate change.' These are also paths Obama is trying to follow. As for their health care systems - most rank far below the US in terms of cancer cure rates (WHO) and longetivity of persons with chronic illnesses (this also includes Canada). Trading good health care for 86% of Americans for poor health care for 96% of Americans - along with higher taxes, higher premiums, and shortages of health care professionals - is bad policy for everyone.
There is only one world power like the US. It stands far above the failing EU-socialist model. The last thing we should do is to follow a failing economic model.
And you should not post mis-information about economics in the EU.
And the fact that we, being at the epicenter of this economic disaster, managed to fare relatively well, proves that we have taken mostly the right steps.
additionally i think the One, pelosi, reid & barney love hope & change in the form of pounding our great country into sand.
what's obviously coming down the pike next from the One et al to continue their vision of hope, change & their continued pounding us into sand, are huge huge tax increases that i guessing in a fantasy turned-left world always results in zillions of monthly jobs created.
yeesh...isn't nov 2010 here yet? can we hold on? we must!
Are all the new jobs down on the Gulf washing birds and string booms?
Maybe reading the article would help. Just a suggestion.
the new jobs are swelling the govt- including irs ranks, plus there are the additional temporary govt census workers who are essentially profiling us all, so that this administration can re-write the voting district boundaries to provide whatever boost they can to demo's in a down lefty mkt.
govt workers earn something like 1.5+times their peers in the private sector which ultimately is a leading indicator towards fiscal train-wrecks like greece, california, portugal?, spain?, italy?, uk? .....usa?
Aren't you glad the enemployment rate is not 30% right now? Because it could be.
Don't let them do it again to our country!
I will agree that when Democrats took control of congress, things started going downhill... Maybe you forget that fact though?
The republicans are responsible for the housing bubble.