While the number of U.S. unemployment benefit claims fell to 498,000 last week, down to the lowest point since the start of the new crown epidemic, the U.S. Labor Department’s jobs report Friday (May 7) showed a surprisingly slow pace of job growth in April.
The Labor Department’s report showed that temporary employment fell, and there were declines in manufacturing and retail employment.
The nonfarm payrolls sector added only a modest 266,000 jobs last month, while the unemployment rate rose to 6.1% from 6% in March.
The March figure was revised downward to show an increase of 770,000 jobs instead of the 916,000 previously reported.
Analysts say the slow job growth may be related to labor shortages as the economy reopens. An improved public health situation and government economic support have boosted consumer spending, but may have limited the incentive for employees to return to the job market and fill job openings.
The report, released Friday by the Labor Department, follows a Labor Department report Thursday showing that new applications for employment benefits fell to 498,000 from 590,000 a week earlier.
Increasing consumer spending as vaccination rollouts and restrictions on businesses continue to be lifted is driving new jobs and slowing layoffs.
The economy grew at a strong pace last quarter, at an annual rate of 6.4%. Higher growth rates are expected for this quarter.
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