Business

More job creation in April in the United States

Joe Biden welcomes this move by business leaders, which is advancing the economic recovery after Covid.

US companies continued to hire more staff in April, a trend welcomed by Joe Biden, who sees it as the result of his economic policies.

Despite higher costs due to a chronic labor shortage and record inflation, employers have added 428,000 new jobs to the economy, particularly in the service, manufacturing and transportation sectors, which have been hardest hit by the pandemic.

That’s more than the 395,000 jobs expected by an analyst consensus. But that is unchanged from March, where the number was revised slightly downwards. In two years, the US economy has recovered nearly 95% of the 22 million jobs destroyed when the Covid pandemic crippled economic activity and plunged the United States into a deep recession in the spring of 2020.

While there was a catch-up effect after immediate and massive destruction and a record unemployment rate of 14.7% in April 2020, the Democratic president has taken credit for this recovery. †Our policies have resulted in the strongest job creation of modern timesJoe Biden noted in a press release.The fall in unemployment (is) the fastest since the start of a presidential termhe added.

The unemployment rate remained close to the February 2020 level at 3.6%, ie just before the spread of the pandemic. At 3.5%, it was then at its lowest level since 1969. In April, the number of unemployed remained “essentially unchanged at 5.9 millionthe ministry noted in its press release.

The unemployment rate for black or African American people, on the other hand, fell to 5.9% last month from 6.2% in March, while remaining much higher than that of whites (3.2%, unchanged) and Hispanics (4, 1). %, down 0.1 point). In contrast, both the employment rate of 62.2% and the employment ratio of 60.0% have changed little over the past month and are each still 1.2% lower than in February. level 2020.

Labor shortages

Labor supply has failed to keep pace with the record wave of job creation over the past year.

For the past year, companies have faced staff shortages after numerous retirements during the pandemic and massive layoffs every month to find better working conditions.

According to another Labor Department survey released this week, there are more than 11 million jobs available in the country, a record. The leisure and hospitality sector is still losing 1.4 million jobs from pre-crisis levels, according to Grant Tronton economist Diane Swonk.

She notes that these losses represent more than the 1.2 million missing jobs from the February 2020 peak. For the education sector, more than 300,000 jobs are still missing. †Burnout and lagging wage increases in education are not helpingon hiring, Mrs. Swonk noted.

In an effort to attract candidates, private sector companies have improved their salary conditions, increased hiring bonuses and are now offering more generous social benefits. This resulted in higher wages, which rose by 0.3% in April compared to March. In one year they rose by 5.5%, a jump that was not enough to offset the record inflation.

There is no doubt that inflation and high prices are a challenge for families across the country, and fighting inflation is my top priority.Joe Biden said. He again blamed the pandemic and the Russian invasion of Ukraine for deteriorating inflation. Inflation in the United States stood at 8.5% yoy in March, according to the CPI index, the highest in 40 year.