US misses forecasts with 175,000 new jobs in April

In March, the total U.S. nonfarm payroll employment rose by 303,000, and there was negligible change in the unemployment rate, at 3.8%.

The newly released report presents data from two monthly surveys. The household survey evaluates labour force status, including unemployment, by demographic characteristics; and the establishment survey assesses nonfarm employment, hours, and earnings by industry.

Household survey data

In March, there has been very little change to the current U.S. unemployment rate of 3.8%, with 6.4 million unemployed people. Since August of last year, the unemployment rate has been between 3.7% – 3.9%.

In March, the United States labour market was relatively stable. No significant fluctuation was observed in key labour market indicators such as the participation rate (62.7%) and employment-population ratio (60.3%). The number of individuals who were outside of the labour force but wanted a job stayed at 5.4 million, while those marginally attached to it were 1.6 million, indicating no major changes from last month.

Establishment survey data

March recorded an increase of 303,000 jobs in nonfarm payroll employment against a year-long average gain of 231,000 jobs. The healthcare, government, and construction sectors recorded the highest number of job additions.

The healthcare sector alone recorded an addition of 72,000 jobs, thereby exceeding the usual annual gain in that sector. Jobs were created in ambulatory healthcare services, hospitals, as well as nursing and residential care facilities.

Government employment grew by 71,000.

Construction added 39,000 jobs, which is double what has been achieved on average during a twelve-month period; this was realized through non-residential specialty trade contractors where most gains occurred among finishing contractors such as drywall installation or electrical wiring installation contractors.

Leisure and hospitality had the largest employment boost since the pandemic started with an increase of 49,000 new jobs. While retail trade remained static, other services and social assistance sectors showed some upward movement. The hourly earnings of private nonfarm employees on average increased by 0.3% to reach $34.69. Over the year, earnings rose by 4.1%.

With manufacturing maintaining at 40.0 hours, the average workweek for all employees increased slightly to 34.4 hours.

January’s employment was revised up by 27,000 jobs and February’s down by 5,000, resulting in a combined net job increase of 22,000 over the two months.

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