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Hiring Bounces Back As Unemployment Falls to 10-Year Low

US Jobs Report – April 2017

Hiring Bounces Back As Unemployment Falls to 10-Year Low

US Jobs Report

On Friday, May 5, the Bureau of Labor Statistics released its monthly employment situation report for April, which is a widely used indicator for the health of the labor market. After an unsteady showing in early spring, April does not disappoint ad bounces back, offering evidence that the U.S. economy is still growing at a healthy clip. The unemployment rate continued to fall marking a new post-recession low.

Key Insights:

  • U.S. adds 211,000 new jobs in April evidence that the economy is still growing at a healthy clip
  • The unemployment rate fell to 4.4% low, last seen in May 2007
  • The labor force participation rate ticked down slightly to 62.9% from 63.0% in March
  • The size of the labor force expanded by 12,000 people
  • 1st-quarter GDP increased to an annual rate of 0.7%, slowest growth in 3 years
  • Average wages rose 0.3% to $26.19 an hour last month as companies pay more to attract or maintain talent

The three-month average dropped from a revised 178,000 to 174,000 in April while the trailing twelve-month average improved from 182,000 to 186,000. This report marks the 79th straight month of continuous job growth.

Leisure and hospitality added 55,000 jobs. Employment in food services and drinking places continued to trend up over the month (+26,000) and has increased by 260,000 over the year.

Employment in health care and social assistance increased by 37,000 in April. Health care employment continued to trend up over the month (+20,000). This is in line with the industry's average monthly job growth during the first quarter of this year but below the average gain of 32,000 per month in 2016. Social assistance added 17,000 jobs in April, with all of the gain in individual and family services.

Financial activities added 19,000 jobs, with insurance carriers and related activities accounting for most of the gain (+14,000). Over the year, financial activities has added 173,000 jobs.

Employment in mining rose by 9,000 in April, with most of the increase in support activities for mining (+7,000). Since a recent low in October 2016, mining has added 44,000 jobs, with three-fourths of the gain in support activities for mining.

Employment in professional and business services continued to trend up in April (+39,000). The industry has added 612,000 jobs over the past 12 months.

Employment in other major industries, including construction, manufacturing, wholesale trade, retail trade, transportation and warehousing, information, and government, showed little change over the month.

Want to know more about the top trends in the job market? Check out the US Labor Market Update from Monster Intelligence.