'Really impressive' jobs report, says economist as manufacturing, restaurants fuel growth in April

Record ID: 1671599

  • Title: 'Really impressive' jobs report, says economist as manufacturing, restaurants fuel growth in April
  • Date: 6th May 2022
  • Summary: WASHINGTON, D.C., UNITED STATES (MAY 6, 2022) (REUTERS) (SOUNDBITE) (English) MORNING CONSULT, CHIEF ECONOMIST, JOHN LEER, SAYING: "In the near term. I don't see this influencing the Fed's plan for two reasons. So, first of all, we had, like I said, labor force participation remains fairly constant. Unemployment rate remains fairly constant. We had strong jobs growth averaging 500,000 or more over the past year. And then on top of that, earlier this week, we had a really positive job openings and labor turnover survey, the so-called JOLTS report (Job Openings and Labor Turnover Survey) come out. So, we've got a lot of open jobs and open vacancies, and the work that the Fed is doing right now, the interest rate increases that it's doing right now, are going to take three, five, six months to really start impacting labor and labor market conditions. And so I think the Fed is not likely to focus on this jobs report."
  • Embargoed: 20th May 2022 15:42
  • Keywords: U.S. job growth employment hiring leisure and hospitality industry manufacturing wage pressures
  • Location: VARIOUS
  • City: VARIOUS
  • Country: USA
  • Topics: Economic Events,United States
  • Reuters ID: LVA008626806052022RP1
  • Aspect Ratio: 16:9
  • Story Text: U.S. job growth increased more than expected in April amid strong hiring in manufacturing as well as the leisure and hospitality industry, underscoring the economy's strong fundamentals despite a drop in output in the first quarter.
    Though the Labor Department's closely watched employment report on Friday (May 6) showed a moderation in wage gains last month, wage pressures are likely to continue to build amid record job openings.
    About 363,000 people left the labor force in April.
    The economy contracted last quarter under the weight of a record trade deficit.
    The Federal Reserve is trying to tighten monetary policy to bring down inflation without tipping the economy into recession.
    The survey of establishments showed nonfarm payrolls rose by 428,000 jobs last month.
    Data for March was revised slightly lower to show 428,000 jobs added instead of 431,000 as previously reported.
    Economists polled by Reuters had forecast payrolls would rise by 391,000 jobs.
    Estimates ranged from a low of 188,000 to a high of 517,000.
    Employment is now 1.2 million jobs below its pre-pandemic level.
    It was the 12th straight month of employment gains in excess of 400,000.
    The broad increase in hiring last month was led by the leisure and hospitality sector, which added 78,000 jobs. Restaurants and bars contributed 44,000 jobs to those gains.
    Manufacturing payrolls rose by 55,000 jobs.
    Transportation and warehousing employment increased by 52,000 jobs, pushing it 674,000 above its February 2020 level.
    Employment in the professional and business services also rose and is now 738,000 above its pre-pandemic level.
    (Production: Aleksandra Michalska)
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