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Financial markets

April Employment Report Surprises with 267,000 New Jobs

Strategic Insights

— 2 min read

The US economy generated 267,000 new jobs in April, far exceeding economists' expectations and showing significant recovery from the harsh winter weather that had slowed down the job market. The employment report, released by the Labor Department, also revealed that the unemployment rate dropped to 6.4 percent, with adult women and men experiencing the same jobless rate of 5.6 percent. The Federal Reserve is likely to take notice of the strong economic growth, which may lead to an interest rate hike to curb inflationary pressures.

Key Takeaways:

  • The economy added 267,000 new jobs in April, surpassing the estimated range of 170,000 to 190,000 jobs.
  • The unemployment rate decreased by a tenth of a point to 6.4 percent, with adult women and men experiencing the same jobless rate of 5.6 percent.
  • Job gains were concentrated in construction, retail trade, and services, where growth had been strong before being crippled by bad weather in early 1994.
  • The average workweek and factory overtime remained at record levels, indicating that companies may be close to exhausting their ability to avoid hiring workers.
  • New York State remained a prominent exception, with the second-highest unemployment rate among the 11 big industrial states for which data were reported, at 8.2 percent.
  • The biggest changes last month were a 1.1-point decline for Texas, to 6.3 percent, and a 1-point jump for California, to 9.6 percent.
  • The 30-year Treasury bond yield posted its biggest increase since the Iraqi invasion of Kuwait in August 1990, reflecting market concerns about inflationary pressures.
  • Alan S. Blinder, President Clinton's nominee to become vice chairman of the Federal Reserve, expressed concern that strong economic growth could push prices up again.
  • Researchers at Columbia University reported a seventh straight advance in their inflation forecast, with the Center for International Business Cycle Research predicting a cyclical upswing in the inflation rate later this year.

Statistics:

  • The number of new jobs added in April: 267,000.
  • The estimated range of new jobs added by economists: 170,000 to 190,000.
  • The unemployment rate: 6.4 percent.
  • The jobless rate for adult women: 5.6 percent.
  • The jobless rate for adult men: 5.6 percent.
  • The unemployment rate for New York State: 8.2 percent.
  • The yield on the 30-year Treasury bond: biggest increase since August 1990.
  • The number of people working part-time who wanted full-time work: 235,000.
  • The number of people who have lost their jobs: decreased since January.
  • The number of re-entrants to the labor force: increased since January.
  • The number of discouraged workers: 502,000.
  • The number of people holding two or more jobs: 7.3 million, or 6 percent of the employed.

Sources:

  • "US Labor Department figures released today"
  • "Page 39 of a newspaper article"
  • "Page 51 of a newspaper article"
  • Bureau of Labor Statistics, "The Labor Picture in April" graph.

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