WASHINGTON—Disappointing jobs numbers released last week are the result of a number of factors, according to one analyst, who remains optimistic job growth will be robust in the remainder of 2021.
Non-farm payrolls in April increased by 266,000, while the unemployment rate rose to 6.1%, according to the Bureau of Labor Statistics. Many analysts had been expecting a tripling of the jobs number.
“Job gains in April were well below expectations, and the downward revision to March may reset expectations for how quickly the recovery will proceed through the summer,” said NAFCU Chief Economist and Vice President of Research Curt Long. “Many will view the poor returns from last month as confirmation that enhanced unemployment benefits are curtailing labor supply.”
Noteworthy, according to Long, was the March non-farm payrolls increase was significantly higher at 777,000.
Average hourly earnings increased by 21 cents in April. The labor force participation rate rose from 61.5% to 61.7%.
Results by Industry
Results among the major industries were mixed. Leisure and hospitality gained 331,000 jobs, followed by 48,000 jobs in the government sector. Transportation lost 81,000 jobs while professional and business services shed 79,000 jobs. The construction sector saw no change. Additionally, sectors that boomed during the pandemic suffered large losses in April: Delivery services lost 77,000 jobs and grocery store employment dropped by 49,000.
“Female employment fell on the month while job growth among males increased by over 300,000, suggesting that lack of childcare may also be a significant factor. However, NAFCU remains optimistic that the summer will see a broad growth in employment and that the economic recovery is still on track,” concluded Long.