Tweet
Economy adds 625,000 jobs in last 2 months
Good news. Now back to work! 
Jobless Rate Falls as Hiring Picks Up
By Leigh Strope
AP Labor Writer
Friday, May 7, 2004; 10:03 AM
Employers added 288,000 jobs to their payrolls in April as the nation's unemployment rate slipped to 5.6 percent, reinforcing hopes for a sustained turnaround in the jobs market that had lagged for so long.
Payrolls have risen now for eight straight months, with 867,000 new jobs created so far this year, the Labor Department reported Friday. The strengthening jobs market comes just in time to aid President Bush's re-election efforts, which were in question a few months ago based on his economic record.
"I'm officially declaring the jobless recovery dead," said Ken Mayland, president of ClearView Economics. "I think we are now on a path of what will be substantial job gains."
Bush is on track to be the first president since the Great Depression to have lost jobs under his watch. But the hiring gains in recent months have shrunk those losses to about 1.5 million. His administration was widely criticized for an overly optimistic forecast that 2.6 million new jobs would be created this year. Economists now say the chugging economy could get close to that mark.
"I don't think these two months of big increases are a flash in pan," Mayland said of April's job growth and the revised 337,000 new jobs in March.
Despite the recent encouraging news on both jobs and economic growth, public support for Bush's handling of the economy was at 43 percent early this month, according to an Associated Press-Ipsos poll. That was the lowest number since Ipsos-Public Affairs began tracking that question in 2002.
Bush on Friday was touring by bus two Midwestern states he narrowly lost during the 2000 election -- Iowa and Wisconsin -- carrying a message of job gains amid the economic upswing he contends has been sparked by lower taxes. Bush rode the bus through parts of Michigan and Ohio earlier in the week.
Democrats said Bush shouldn't get a pass for Friday's positive economic news,
"The job creation picture may finally be brightening, but wages are stagnating and gas prices are soaring, so we still have a long way to go before workers begin to feel the effects of this recovery," said Rep. Pete Stark of California, the top Democrat on the Joint Economic Committee.
"We still have a jobs deficit and long-term unemployment made history last month by hovering at 20 percent for more than a year and a half. These are not the kind of records the President should be setting at this point in a recovery," he added.
n the report, hiring was widespread last month, with the service sector leading the way. Professional and business services employment rose substantially, by 123,000. In that category, gains were in employment services, including temporary help firms, services to buildings and dwellings, management and technical consulting services and architectural and engineering services.
The nation's struggling factories also appear to be turning around. Based on Labor Department revisions, the manufacturing sector added jobs for three straight months, including 21,000 in April. For the year, manufacturing payrolls are up by 27,000 overall.
The unemployment rate fell 0.1 percentage point to 5.6 percent last month, after reaching a high of 6.3 percent in June 2003 during the economic slowdown.
Revisions to payrolls also showed a stronger jobs market than previously reported. Last month's 308,000 payroll gains were revised up to 337,000. April's showing surprised analysts, who had expected payrolls of about 180,000 to 200,000.
The economy has rebounded strongly, but companies, under intense pressure to compete globally, have been holding down their costs by working employees harder instead of hiring new ones. That appears to be changing, though critics note that job gains are occurring in the lower-paying service sector at retailers and restaurants, and in temporary employment firms.
The Federal Reserve decided Tuesday to hold a key interest rate at a 46-year low of 1 percent, saying said such low rates along with productivity gains are helping to support economic activity.
But the strengthening jobs market leads economists to anticipate the first rate increases in more than four years will start this summer, probably in August, and will come in the form of one-quarter of a percentage point rises in the federal funds rate.
Other gains in April occurred in retail at building and garden supply stores, general merchandise stores and motor vehicle and parts dealers. The leisure and hospitality sector also added jobs, especially in the category of food services. Hiring also continued to be strong in health care and social assistance for the month.
By Leigh Strope
AP Labor Writer
Friday, May 7, 2004; 10:03 AM
Employers added 288,000 jobs to their payrolls in April as the nation's unemployment rate slipped to 5.6 percent, reinforcing hopes for a sustained turnaround in the jobs market that had lagged for so long.
Payrolls have risen now for eight straight months, with 867,000 new jobs created so far this year, the Labor Department reported Friday. The strengthening jobs market comes just in time to aid President Bush's re-election efforts, which were in question a few months ago based on his economic record.
"I'm officially declaring the jobless recovery dead," said Ken Mayland, president of ClearView Economics. "I think we are now on a path of what will be substantial job gains."
Bush is on track to be the first president since the Great Depression to have lost jobs under his watch. But the hiring gains in recent months have shrunk those losses to about 1.5 million. His administration was widely criticized for an overly optimistic forecast that 2.6 million new jobs would be created this year. Economists now say the chugging economy could get close to that mark.
"I don't think these two months of big increases are a flash in pan," Mayland said of April's job growth and the revised 337,000 new jobs in March.
Despite the recent encouraging news on both jobs and economic growth, public support for Bush's handling of the economy was at 43 percent early this month, according to an Associated Press-Ipsos poll. That was the lowest number since Ipsos-Public Affairs began tracking that question in 2002.
Bush on Friday was touring by bus two Midwestern states he narrowly lost during the 2000 election -- Iowa and Wisconsin -- carrying a message of job gains amid the economic upswing he contends has been sparked by lower taxes. Bush rode the bus through parts of Michigan and Ohio earlier in the week.
Democrats said Bush shouldn't get a pass for Friday's positive economic news,
"The job creation picture may finally be brightening, but wages are stagnating and gas prices are soaring, so we still have a long way to go before workers begin to feel the effects of this recovery," said Rep. Pete Stark of California, the top Democrat on the Joint Economic Committee.
"We still have a jobs deficit and long-term unemployment made history last month by hovering at 20 percent for more than a year and a half. These are not the kind of records the President should be setting at this point in a recovery," he added.
n the report, hiring was widespread last month, with the service sector leading the way. Professional and business services employment rose substantially, by 123,000. In that category, gains were in employment services, including temporary help firms, services to buildings and dwellings, management and technical consulting services and architectural and engineering services.
The nation's struggling factories also appear to be turning around. Based on Labor Department revisions, the manufacturing sector added jobs for three straight months, including 21,000 in April. For the year, manufacturing payrolls are up by 27,000 overall.
The unemployment rate fell 0.1 percentage point to 5.6 percent last month, after reaching a high of 6.3 percent in June 2003 during the economic slowdown.
Revisions to payrolls also showed a stronger jobs market than previously reported. Last month's 308,000 payroll gains were revised up to 337,000. April's showing surprised analysts, who had expected payrolls of about 180,000 to 200,000.
The economy has rebounded strongly, but companies, under intense pressure to compete globally, have been holding down their costs by working employees harder instead of hiring new ones. That appears to be changing, though critics note that job gains are occurring in the lower-paying service sector at retailers and restaurants, and in temporary employment firms.
The Federal Reserve decided Tuesday to hold a key interest rate at a 46-year low of 1 percent, saying said such low rates along with productivity gains are helping to support economic activity.
But the strengthening jobs market leads economists to anticipate the first rate increases in more than four years will start this summer, probably in August, and will come in the form of one-quarter of a percentage point rises in the federal funds rate.
Other gains in April occurred in retail at building and garden supply stores, general merchandise stores and motor vehicle and parts dealers. The leisure and hospitality sector also added jobs, especially in the category of food services. Hiring also continued to be strong in health care and social assistance for the month.
Comment