(CNN Business) –– Gone are the days of adding millions of jobs per month: The US economy added 428,000 jobs in April, the same as in March, the Bureau of Labor Statistics (BLS) reported Friday.
Although the figure exceeds the 391,000 jobs that economists forecast, the slowdown in job growth is not surprising. Which is due, in part, to the fact that the recovery has come a long way and was bound to slow down at some point. Also because the shortage of workers makes it difficult to hire more people.
Last month, most jobs were added in the entertainment and hospitality industry. Manufacturing, transportation and warehousing also added a significant number of jobs. The nation is still 1.2 million jobs below its level in February 2020, when the pandemic began.
The unemployment rate, which was expected to fall to a pandemic-era low, held steady at 3.6%.
On the other hand, weekly claims for jobless benefits returned to pre-pandemic levels months ago. Data released Thursday showed that 200,000 workers filed initial jobless claims last week, adjusted for seasonal changes. A figure slightly above expectations and the level of the previous week.
Continuous claims, which count workers who applied for benefits for at least two weeks in a row, fell below 1.4 million to the lowest level since January 1970, the Labor Department reported. While the four-week average of this indicator stood just above 1.4 million, the lowest level since February 1970.
Inflation affects the hiring of new jobs in the United States
Meanwhile, the problem of inflation in the United States it has also affected the hiring of new jobs. As consumers see prices rise for virtually everything from food to rent to gasoline, companies are having to raise wages to compete for talent. That hits smaller companies especially hard and means they can’t hire as much as they might otherwise.
In March, the nation had a record number of available jobs of 11.5 million, according to BLS data earlier this week. The number of workers who voluntarily left their jobs also reached an all-time high of 4.5 million in March. Still, hiring outnumbered resignations.
News in development…