Businesses hiring, but unemployment rate rises
April employment in the United States increased by the most in four years, but the unemployment level rose again.
There was an increase of 290,000 jobs in April, according to the U.S. Department of Labor, which came after a gain of 230,000 jobs in March.
“Job growth like this is going to sustain the recovery going forward and certainly help sustain the U.S. consumer,” John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, N.C., told Bloomberg. “Businesses are coming to the conclusion that there is a sustained economic recovery.”
Unemployment increased to 9.9 percent from 9.7 percent in March, likely due to thousands of new workers, college graduates and people who had left the work force but are now looking for jobs.
Private payrolls rose by 231,000 in April, which marked the fourth straight month of growth, Bloomberg reported. The gain followed a 174,000 increase in March. The federal government payroll increased by 65,000 jobs in April, but state and local governments cut 6,000 positions during the month.
“The hiring process has begun in the U.S.,” Stefane Marion, chief economist at National Bank Financial Inc. in Montreal, told Bloomberg. “It’s a very encouraging outlook for the U.S. We expect the job creation to continue in the coming months.”