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Economy adds 266K jobs in April, far below expectations


Economy adds 266K jobs in April, far below expectations
By Niv Elis - 05/07/21 08:32 AM EDT

The U.S. economy added 266,000 jobs in April and the unemployment rate rose to 6.1 percent, an unexpectedly poor showing falling well below expectations.

The less-than-expected showing exposed gaps in a recovery that some economists were worried would "overheat" by recovering too quickly.

Economists were expecting roughly a million new jobs in the April report and a drop in the unemployment rate. Some firms had projected increases as high as 1.3 million.

Even March's blockbuster figure was revised downward by more than 15 percent, to 770,000 from 916,000.

The slowdown in job growth took place even as the $1.9 trillion COVID-19 relief bill President Biden signed in March began working its way through the economy, including expanded unemployment benefits and $1,400 stimulus checks.


Biden’s Economy Adds Only 226k Jobs vs. 1 Million Expected in April
by Matt PalumboPosted: May 7, 2021

Economists expected the U.S. economy would add one million jobs in April, bringing the unemployment rate down to 5.8%, Instead, the economy added only 266,000 jobs, the unemployment rate inched up slightly to 6.1%, and that wasn’t all.

According to CNBC:

    There was more bad news: March’s originally estimated total of 916,000 was revised down to 770,000, though February saw an upward revision to 536,000 from 468,000.

    “I think this is just as much about a shortage in labor supply as it is about a shortage of labor demand,” said Jason Furman, an economist at Harvard University and a former Obama administration advisor. “If you look at April, it appears that there were about 1.1 unemployed workers for every job opening. So there are a lot of jobs out there, there is just still not a lot of labor supply.”


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