WASHINGTON–The United States added 428,000 jobs in April, approximately the same number as in March, according to the Bureau of Labor Statistics.
The number was larger than the 350,000 that had been forecast earlier in the week by CUNA’s economists and also more than the 390,000 jobs many economists had also projected, it does reflect a slowdown in job growth.
Although that was more than the 391,000 that economists had predicted, the slowdown in job growth is no surprise, said analysts, given how many jobs have already recovered since the pandemic.
In the April jobs report showed the most positions were added in the leisure and hospitality industry, with manufacturing, and transportation and warehousing also adding a significant number of jobs. The U.S. still remains 1.2 million jobs below its February 2020 level, when the pandemic began.
The unemployment rate, which had been expected to fall to a pandemic-era low, held steady at 3.6%.
"Headline job growth met expectations in April, but the details point to a decelerating labor market. Labor force participation declined, and job gains were concentrated in areas like restaurants and hotels, which suffered during Omicron and are not likely to continue,” said NAFCU Chief Economist and VP of Research Curt Long. “Average wages grew at a robust 5.5% pace on a year-over-year basis, but by only 3.7% in the past quarter on an annualized basis. Nevertheless, sturdy job gains will keep the Federal Reserve on its present course, and credit unions should continue to expect two more 50-basis point rate hikes this summer."
CUNA's Reaction
“The economy added more jobs in April than expected fueled by employment gains across several sectors," stated CUNA Senior Economist Dawit Kebede. "Leisure and hospitality added more jobs as consumer demand for travel and recreation continues to increase as COVID fear lessen. The labor force participation rate has declined 0.2 percentage points compared to the previous month, indicating a slight decrease in labor supply. Participation is expected to go up if the pandemic becomes less of a health concern. Strong demand for hiring, coupled with low labor supply, continues to increase wages, adding more inflationary pressure. A persistent imbalance in labor demand and supply may lead to a wage-inflation spiral. Strong job gains and a low unemployment rate implies that consumer demand and spending will continue to be strong. Consumer spending drives two-thirds of economic activity.”