April’s Jobs Report in US – Cautionary signs: 73,000 fewer people had jobs

Hiring in February and March was better than first thought.

The unemployment rate plunged to 6.3 percent from 6.7 percent.

At first glance, Friday’s U.S. jobs report suggested that the agonizingly slow 5-year-old economic recovery had burst into a full sprint.

Yet several cautionary signs emerged from the report, starting with that spectacular plunge in the unemployment rate.

Here’s why: The government uses two surveys for the jobs report. The job gain comes from a survey of businesses, the unemployment rate from a survey of households. Sometimes, the two conflict.

The survey of businesses showed 288,000 more jobs. Yet the household survey, in calculating unemployment, found that 73,000 fewer people had jobs.

Why did the unemployment rate sink? Because 806,000 fewer people were in the workforce. Many retired or ended their job hunts. And fewer-than-expected people began looking for work.

via 5 cautionary signs tucked into April’s jobs report.

Related article

• US in April – Total nonfarm payroll employment rose by 288,000 and UR down at 6.3 percent (jobmarketmonitor.com)