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5 May 2017
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| U.S (The Total Investment & Insurance Solutions) |
Hiring in the United States rebounded in April as employers added a
brisk 211,000 jobs, a reassuring sign that the economy's slump in the first
three months of the year will likely prove temporary.
The unemployment rate dipped to 4.4 percent —
its lowest point in a decade — from 4.5 percent in March, the Labor Department said Friday . The Total Investment & Insurance Solutions
The figures suggest that businesses expect
consumer demand to rebound after a lackluster first quarter, when Americans
increased spending at the slowest pace in seven years, and will need more
employees.
So far this year, employers have added an
average of 185,000 jobs a month, matching last year's solid pace. It shows that
so far the job market under President Donald Trump closely resembles the one
Barack Obama presided over in 2016.
Average paychecks did grow more slowly in
April, increasing 2.5 percent over the past 12 months, below March's
year-over-year gain. It means companies may not yet feel much pressure to raise
pay to find or keep the workers they need. Typically, employers feel compelled
to pay more as the number of unemployed dwindles. In a strong economy, hourly
pay gains tend to average around 3.5 percent.
"The U.S. job market is in solid
shape," said Gus Faucher, chief economist at PNC Financial Services.
Monthly job gains at the current pace should
eventually help push up wages, Faucher added.
In an encouraging trend, the number of
part-time workers who would prefer full-time jobs fell in April to the lowest
level in nine years. This is a sign that many employers are meeting rising
demand by shifting more part-timers to full-time work — even if they aren't
raising hourly pay significantly.
And in fact, hiring was strongest last month
in lower-paying industries. One such category that includes hotels,
restaurants, casinos and amusement parks added 55,000 jobs, the most of any
major sector.
Health care, which includes some
higher-paying jobs in nursing as well as lower-paid home health care aides,
added 37,000 jobs in April. Banking and other financial services added 19,000.
Construction added just 5,000 jobs, after
much larger gains earlier this year. Factories hired 6,000, the fewest for that
category in five months. The Total
Investment & Insurance Solutions
The report adds to evidence that economic
growth is rebounding in the current April-June quarter, with some economists
forecasting that it could top a 3 percent annual rate, compared with the first
quarter's 0.7 percent rate. Last quarter, consumers spent less in part because
of low utility bills during an unseasonably warm winter. That's likely to prove
a temporary restraint.
And the housing market is reaching new
heights as home sales and construction march upward even though a limited
number of properties are for sale. Sales of existing homes jumped in March to
their highest level in more than a decade. The Total Investment & Insurance Solutions
The retail industry's woes continued last
month, with stores adding just 6,000 jobs. That's below their long-run average
and comes after retailers slashed a combined 55,000 jobs in February and March.
Traditional chains like Sears and Macy's have
been shedding jobs in the face of ferocious competition from Amazon.com and
other e-commerce companies. Many traditional retailers are rapidly building up
their own online storefronts and expanding their warehousing and logistics
divisions. But those functions are less labor-intensive and are unlikely to
fully offset the job losses at physical stores.
Factories have mostly recovered over the past
six months from nearly two years of struggle. Plummeting oil prices had caused
drilling firms to slash orders for steel pipe, machinery and other equipment.
And weak growth overseas, plus a strong dollar, depressed exports. But oil and
gas prices stabilized last fall. Growth is picking up in Europe and Japan and
has stabilized in China. All that has helped lift factory output.The Total Investment & Insurance
Solutions
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