Two Cheers for the April Jobs Report

May 2, 2014 10:40 AM
By Milton Ezrati

While job growth rebounded from weather-related weakness, labor market fundamentals remain soft.

The April employment report released May 2 gave spirits a lift after the earlier, dreary GDP report on April 30. The government announced that the U.S. economy added 288,000 jobs on the month, with the unemployment rate dropping to 6.3%. But the April report requires two points of context. 

First, something strong was inevitable after the weather-induced disruptions suffered in prior months. Second, people are still dropping out of the workforce, bringing the unemployment rate lower than the fundamental situation suggests and speaking to the still-discouraging jobs climate.  

With these points in mind, the picture remains one of a still-sluggish recovery. Still, it gives confidence that the first quarter's statistics understated the fundamental economic situation. 

What do you think about the employment picture? Let us know in the Comment section, below.

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