U.S. payrolls rise more than expected, jobless rate falls

 People wait in line to meet a job recruiter at the UJA-Federation Connect to Care job fair in New York March 6, 2013. Credit: Reuters/Shannon Stapleton


People wait in line to meet a job recruiter at the UJA-Federation Connect to Care job fair in New York March 6, 2013.
Credit: Reuters/Shannon Stapleton

reuters_logo

WASHINGTON - Employment rose faster than expected in April and hiring was much stronger than previously thought in the prior two months, a sign of resilience that should help the economy bear the blow from belt-tightening in Washington.

Nonfarm payrolls rose 165,000 last month and the jobless rate fell to 7.5 percent, the lowest level since December 2008, the Labor Department said on Friday. The job counts for February and March were revised up by a net 114,000.

"This bolsters the case that the U.S. economy will be able to survive the combined headwinds of sequestration and a deepening recession in Europe," said Scott Anderson, chief economist at Bank of the West in San Francisco.

Investors on Wall Street cheered the data, which beat economists' expectations for a 145,000 jobs gain and a steady 7.6 percent reading on the unemployment rate.

U.S. stocks jumped, with the Standard & Poor's 500 index and the Dow Jones industrial average rising to intraday record highs. The dollar rallied against the yen, while Treasury debt prices fell.

Payrolls rose by 138,000 jobs in March, 50,000 more than previously reported, and job growth for February was revised up by 64,000 to 332,000, the largest gain since May 2010.

But the gains last month were far below the 206,000 jobs per month average of the first quarter, the latest evidence the economy is cooling, even if not as quickly as earlier feared.

Indeed, the report offered a number of signs of a slowing in the economy's momentum.

Construction employment fell for the first time since May and manufacturing payrolls were flat. The length of the average workweek pulled off a nine-month high and a gauge of the overall work effort fell.

The economy has been hit by higher taxes and $85 billion in federal government spending cuts, known as the sequester.

While the economy grew at a 2.5 percent annual pace in the first quarter, data on construction spending, retail sales and trade suggested it ended the period with less speed.

Further, factory data for April implied the economy continued to lose momentum at the start of the second quarter, a thesis supported by a report on Friday that showed the pace of growth in the services sector in April was the slowest in nine months.

"While things may not be as bad we thought, the economy has certainly slowed," said David Berson, chief economist at Nationwide Insurance in Columbus, Ohio.

By Lucia Mutikani (Reuters) | Fri May 3, 2013 1:28pm EDT

[button-black text="READ MORE" Full Story" url="http://www.reuters.com/article/2013/05/03/us-usa-economy-jobless-idUSBRE9410LX20130503"]

 
 

News Sources

  • ABC
  • Access Hollywood
  • Associated Press
  • BBC
  • Bloomberg
  • Boston Globe
  • C-SPAN
  • CBS
  • Chicago Sun-Times
  • Christian Science Monitor
  • Center for Public Integrity
  • CNN
  • Congressional Quarterly
  • Democracy Now!
  • Digg
  • E! Online
  • Entertainment Weekly
  • Financial Times
  • Forbes
  • Foreign Policy
  • Fortune
  • Front Street Magazine

  • U.S. News, World News
  • Business, Politics
  • Entertainment, Sports
  • Art, Lifestyle
  • Videos And More
  • News Sources

  • Fox News
  • Google News
  • Guardian
  • Huffington Post
  • Independent
  • LA Weekly
  • Los Angeles Times
  • McClatchy
  • Mother Jones
  • National Journal
  • NBC New
  • New York Post
  • New York Times
  • Newsweek
  • Newsy
  • NPR
  • PBS NewsHour
  • People
  • Politico
  • Reuters
  • TPM
  • Washington Post
  • Thanks For Your Support!

    Advertisement
     

    Copyright © 2018 Front Street. All Rights Reserved.