Dissecting the April Jobs Report

The Labor Department released its April jobs report with higher than expected job growth, showing a rebound after a slow March. Here’s what we know:
The numbers
211,000: The economy added 211,000 jobs
4.4%: The jobless rate fell to 4.4%
2.5%: Wages went up 2.5% over the past 12 months
The good
There’s a lot of good in this jobs report. The 211,000 jobs added is more than economists expected according to Marketwatch, and it’s more than double the growth in the March report.
Additionally, the 4.4% unemployment rate is the lowest in nearly a decade. According to the Wall Street Journal, the last time the unemployment rate was 4.4% was May 2007. The last time it was lower was May 2001. The number suggests the economy may be near full employment.
The bad
While not necessarily bad, one of the weaker points in the report is the 2.5% wage increase. According to the New York Times, it’s a sign that the economy hasn’t actually reached full employment. However, Bloomberg reports wage gains should be the next step in the continued recovery from the recession, citing the tightening labor market.
The unknown
The biggest questions out of the April jobs report concern what exactly the results mean for other parts of the government. Marketwatch reports the job growth keeps the Fed on track to raise interest rates again soon.
The April report also clears up some questions after March’s surprisingly low job report, according to Marketwatch. Their analysts say April’s strong numbers show March was likely an anomaly caused by bad weather.
Read our analysis of the May jobs report.

Post by Nicole Fuqua