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| US Hiring Rebounds in April; Unemployment Dips to 5.4% |
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The U.S. job market rebounded in April, with strong growth in business services, health care and construction.
After the weak job gains in March, fewer than 100,000 hires, Bankrate.com's chief financial analyst Greg McBride says, the second quarter is off to a good start.
"The April jobs report shows that we are back on track.
It really reveals that March was the aberration - that was the month where the results were very poor, and they were revised lower with this morning’s release.
But, you know, April really kind of gets us back in the game."
April's job numbers were an encouraging sign for investors, who helped boost stock prices on Wall Street by more than 1 percent.
Adding to the optimism, average hourly earnings increased, but just barely.
At just 3 cents more per hour, McBride says, it's a step in the right direction, but not enough to significantly boost growth.
"People don't have enough spending power.
They don't have enough breathing room in the household budget.
That's why we've had this perpetually slow-growth economy, because consumers are not in a position where they can ramp up spending on a consistent basis."
Until employers start ramping up wages, McBride says, the housing market is likely to remain sluggish.
Part of the problem, according to the National Association of Business Economics' Ken Simonson, is inertia.
"Employers have been very cautious about hiring people, raising wages, and workers also, I think, are nervous that a job won't last.
So, it's made them less aggressive about pushing for wage increase in their current job or changing job."
That could change as competition for skilled workers heats up.
The new jobs data shows about 8.5 million Americans are still out of work, but that's more than a million fewer unemployed than just one year ago.
Mil Arcega, VOA News, Washington |
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