U.S. job growth unexpectedly slowed in April, likely curbed by shortages of workers and raw materials as rapidly improving public health and massive government aid fueled an economic boom.
The Labor Department's closely watched employment report on Friday, which showed a plunge in temporary help jobs - a harbinger for future hiring - as well as decreases in manufacturing, retail and courier services employment, sparked a heated debate about the generosity of unemployment benefits.
The enhanced jobless benefits, including a government-funded $300 weekly supplement, pay more than most minimum wage jobs.
The benefits were extended until early September as part of a $1.9 trillion COVID-19 pandemic relief package approved in March.
Nonfarm payrolls increased by only 266,000 jobs last month. Data for March was revised down to show 770,000 jobs added instead of 916,000 as previously reported. Economists polled by Reuters had forecast payrolls would advance by 978,000 jobs.
That left employment 8.2 million jobs below its peak in February 2020.
“The road to full employment may be a bit longer than we all thought,” said Scott Anderson, chief economist at Bank of the West in San Francisco.
The unemployment rate rose to 6.1% in April from 6.0% in March as 430,000 people entered the labor force. The jobless rate has been understated by people misclassifying themselves as being "employed but absent from work."
Average hourly earnings jumped 0.7% after dipping 0.1% in March. The average workweek rose 0.1 hour to 35 hours.
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