The trend continues. The Bureau of Labor Statistics released their monthly employment report with numbers well above the 196,000-mark estimated by the Dow Jones. According to the report, the US remains white hot in the employment sector, adding a total of 263,000 jobs in April, making the average monthly gain 213,000 year-to-date.
Notable job gains occurred in professional and business services, construction, health care, and social assistance. The unemployment rate dropped to 3.6 percent – its lowest since late 1969.
April’s big increase in jobs comes against a backdrop of mostly positive economic momentum for the U.S. economy. GDP growth was 3.2 percent during the first quarter of 2019, far exceeding expectations, while productivity increased by 3.6 percent for the best growth in five years during the same time period.
Average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents to $27.77. The average workweek decreased by 0.1 hours to 34.4 hours. Based on the report, employees are getting paid more and working less. This news is optimistic for the average worker who feels overworked and underpaid.
Among the major industries, construction employment rose by 33,000, marking a substantial shift from March’s job report.
ThinkWhy™ It Matters: U.S. economic growth is in full stride as peaks, outside of February, continue to remain high. Many things can point to steady growth; however, fiscal and monetary policies are believed to play a major role. The business-friendly climate has contributed to the lowering of some tax regulations while the last tax cut has still been paving the way for a brighter future.
The ThinkWhy forecast expects 2019 to end with over 200K jobs created per month or a total job gain of 1.2 million for the year. The growth has been impressive, and the labor supply has remained strong. The labor shortage has not been an issue so far. It seems those out of work may be slowly climbing back in due to a healthy pace of wage growth.