Unemployment Reclaims 9-Handle Despite Swifter Job Creation; Update: 25% McJobs
Employment actually rose more swiftly than expected in April, but the headline jobless rate jumped from 8.8% to 9.0%.
Nonfarm payroll employment rose by 244,000 in April, and the unemployment rate edged up to 9.0 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in several service-providing industries, manufacturing, and mining.
Economists were expecting gains of 185,000. Private sector payrolls grew by 268,000, better than the consensus estimate of 200,000.
The unempoyment rate had been expected to remain unchanged.
The acceleration in job growth suggests the labor market may have resumed its stalled improvement, but at 244k/month, we're still not going to see unemployment come down in any meaningful way.
The economy has recovered only a fraction of the more than 8 million jobs lost in the 2007-2009 recession. Job growth of between 250,000 and 300,000 a month is needed to make significant strides in reducing unemployment.
Not to worry - in April, the Vice President assured us that the administration's "good planning" will soon carry us back into the 250-500k/month range.
Update: So this makes a little more sense.
An unusually vivid example occurred on April 19, which McDonald’s declared National Hiring Day, encouraging people across the country to apply for a job.
The world’s biggest restaurant chain reported that it received one million applicants for open positions, which resulted in 62,000 people gaining employment. Another 900,000 plus were turned down.
If you back out McDonald's one-time hiring spree, you're left with 182,000 jobs created in April (206,000 in the private sector), more in line with the doldrums witnessed in recent months.
Handcrafted by Flip on May 6, 2011 |
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