Friday, May 3, 2013

U.S. Economy added 165,000 jobs in April and Unemployment Fell to 7.5%

The U.S. economy added 165K jobs in April, with strong upward revisions to past reports as well. Moreover, the unemployment rate continued to fall due to real improvement in labor markets. March’s jobs growth was revised up from 88K jobs to 138K jobs. February’s numbers were revised up as well to 332K jobs. The cumulative revisions added 114,000 jobs over the previous two months. Overall April’s report is encouraging, and allays fears that job growth is slowing.

As seen in past months, April’s strong numbers resulted from positive growth in the private sector, particularly the services industry, which added 185K jobs in April. The private industry as a whole added 176K jobs in April, and saw positive revisions to the previous two months. The goods producing sector saw a 9K job loss, following 6 months of positive growth.

The government continues to drag on job growth, shedding 11K jobs in April. April’s value is still below the government’s 6-month average of 14K job losses per month. As the impacts of sequester take hold, the government employment loss is expected, and anticipated to continue through the remainder of this fiscal year.

The unemployment rate fell to 7.5%, the lowest level since 2008. The improvement in the unemployment was solely due to new job creation, as the labor force participation rate held constant at 63.3. The lower unemployment rate was a “real” improvement with 83K fewer people reported being unemployed in April.

Read the BLS report.

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