eNewMexican

Hiring slows sharply as job market hits pause

Many businesses struggle to find enough workers to keep up with consumer demand

By Christopher Rugaber

WASHINGTON — The recovery of America’s job market hit a pause last month as many businesses — from restaurants and hotels to factories and construction companies — struggled to find enough workers to catch up with a rapidly strengthening economic rebound.

Employers added just 266,000 jobs in April, sharply lower than in March and far fewer than economists had expected. With virus cases declining and states and localities easing restrictions, the recovery from the pandemic recession has been so fast that many businesses have been caught flat-footed in the face of surging consumer demand.

Last month’s hiring slowdown appears to reflect a host of factors. Nearly 3 million people are reluctant to look for work because they fear catching the virus, according to government surveys. More women also dropped out of the workforce last month, likely to care for children, after many had returned in the previous two months.

In addition, construction companies and manufacturers, especially automakers, have been left short of parts because of clogged supply chains and have had to slow production. Both sectors pulled back on hiring in April. And some businesses say they believe that a $300-a-week jobless benefit, paid for by the federal government, is discouraging some of the unemployed from taking new jobs.

Still, companies have added jobs for four straight months, the Labor Department said Friday, though the government lowered its estimate of job growth for February and March by a combined 78,000. April’s total is far below March’s gain of 770,000.

The resumption of hiring has encouraged some Americans to start looking for jobs, which means they are newly counted as unemployed if they don’t immediately find work. This is what happened in April, when the unemployment rate ticked up from 6 percent to 6.1 percent.

Employers are now posting far more jobs than they did before the pandemic, and “help wanted” signs dot many restaurant windows. Other telltale signs of labor shortages have emerged as well: Average hourly pay rose 0.7 percent in April to $30.17, which the government said suggests that the fast reopening of the economy “may have put upward pressure on wages.” The average workweek also rose, evidence that companies are asking their employees to work more.

The drop in hiring suggests the Federal Reserve is still months away from slowing its purchases of Treasurys and other bonds, which are intended to keep longterm interest rates low. Chairman Jerome Powell has said that it would take “a string” of reports like the one for March to show that the economy was on track for a full recovery. Fed officials have signaled they don’t intend to raise their short-term benchmark rate until after 2023.

Some economists note that the $300-a-week federal jobless benefit, available until September, has come on top of state payments that average about $320. The combined unemployment benefits mean that anyone earning less than $32,000 a year can potentially receive more income from unemployment aid than from their previous jobs, according to economists at Bank of America.

On Friday, the U.S. Chamber of Commerce responded to the April jobs report by calling for an end to the $300-a-week federal unemployment supplement, saying it was giving some recipients less incentive to look for work.

NATION & WORLD

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2021-05-08T07:00:00.0000000Z

2021-05-08T07:00:00.0000000Z

https://enewmexican.com/article/281603833341099

Santa Fe New Mexican