The slight increase in the April unemployment rate belies the otherwise hopeful jobs report, which shows the payroll increased throughout the private sector and ahead of expectations.
The US Labor Department said jobs increased by 290,000 in April, well ahead of Wall Street's 180,000 forecast. The unemployment rate, however rose to 9.9%; it was expected to remain at 9.7%. The government also revised the number of jobs added in March from 162,000 to 230,000.
The manufacturing sector added the most workers since August 1998, and the service sector saw its highest gain since November 2006.
> The manufacturing sector added 44,000 jobs
> Professional and Business sectors added 80,000 jobs
> Healthcare and Leisure and Hospitality also saw increases
> Employment also rose in the federal government from continued hiring of Census workers
> Transportation and Warehousing dropped 20,000 due to a large decline in Courier and Messinger services
Unemployment is the most important factor in the economic recovery as jobless levels will determine everything from consumer demand to home prices to credit availability, but conditions may improve well before the progress shows up in the headline figure.
The report a day after the Labor Department reported first-time jobless claims fell by 7000 last week, to 440, 000, in line with expectations. The decrease was the third in a row the government reported, representing a hopeful sign that jobless market is falling.
Additional encouraging economic indicators, include:
> The Institute for Supply Management, a trade group of purchasing executives, said the manufacturing sector expanded in April at its fastest pace in nearly 6 years.
> ISM data showed the services sector also grew in April, representing the fourth consecutive month of increases.
> Overall the economy expanded by 3.2% in the first quarter, the Commerce Department said, the third straight period of growth.
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