Employment Situation Remains Muddled

Employers added just 160,000 jobs in April, fewer than expectations, the Labor Department reported Friday.

The unemployment report remained unchanged at 5.0 percent; the number of unemployed persons was little changed at 7.9 million.

The Bureau of Labor Statistics revised February payroll numbers down from 245,000 to 233,000 and revised March numbers down from 215,000 to 208,000, a total drop of 19,000. Over the past three months, job gains have averaged 200,000 per month. Over the prior 12 months, employment growth averaged 232,000 per month.

The report said employment gains occurred in professional and business services, health care and financial activities, while mining continued to lose jobs.

“Despite the slowdown, the labor market continues to tighten and wages have accelerated,” said John Silvia, chief economist with Wells Fargo Securities, Charlotte, N.C.

BLS said the number of long-term unemployed (those jobless for 27 weeks or more) declined by 150,000 to 2.1 million in April. These individuals accounted for 25.7 percent of the unemployed. The labor force participation rate decreased to 62.8 percent, while the employment-population ratio edged down to 59.7 percent.

Employment in financial activities rose by 20,000 in April, with credit intermediation and related activities (+8,000) contributing to the gain. Financial activities has added 160,000 jobs over the past 12 months.

BLS said the average workweek for all employees on private nonfarm payrolls increased by 0.1 hour to 34.5 hours in April. The manufacturing workweek and overtime remained unchanged at 40.7 hours and 3.3 hours, respectively. The average workweek for production and nonsupervisory employees on private nonfarm payrolls was up by 0.1 hour to 33.7 hours.

Average hourly earnings for all employees on private nonfarm payrolls increased by 8 cents to $25.53, following an increase of 6 cents in March. Over the year, average hourly earnings have risen by 2.5 percent. Average hourly earnings of private-sector production and nonsupervisory employees increased by 5 cents to $21.45.