Connect with us

News

April Jobs Report Goes Bust Due to Worker Shortage

Published

on

The Text Now Hiring Sticker Attached On Glass Door Of The Office | April Jobs Report Goes Bust Due to Worker Shortage | Featured

America’s worker shortage woes continue as the April jobs report showed increasing unemployment. Nonfarm hiring generated much lower numbers than expected generated only 266,000 jobs versus an expected 1 million new jobs. 

RELATED: Montana To End Extra Jobless Benefits Due to Worker Shortage

Job Report Shows Big Letdown in Hiring

April proved a big letdown on hiring on nonfarm jobs as unemployment rates went up again at 6.1% and went over targets of 5.8%. Many economists expected the job rates to go much higher, signifying that the US economy is roaring back. 

Even more bad news arrived at the labor front. The Bureau of Labor Statistics adjusted the original estimate of 916,000 jobs generated last March down to 770,000. However, February jobs also got the makeover, improving from 468,000 to 536,000. 

Mild Reaction By Markets

Despite the worse than expected hiring numbers, the markets stayed upbeat. Given the Federal Reserve’s policy to keep interest rates low, Wall Street probably sees unemployment as a short-term issue. JJ Kinahan, the chief market strategist at TD Ameritrade, thinks this situation remains manageable. “It certainly takes the pressure off the Fed and takes an imminent rate increase off the table. 

“We’re not going to see inflation in wages,” Kinahan said. “And we don’t have as many people employed as we thought, so we have to keep the party going,” he added. In fact, average hourly wages increased during March. However, the year-on-year averages changed little as more low-wage workers returned to work.  

Labor Supply Shortage

Harvard Economist Jason Furman thinks it’s both supply and demand. “I think this is just as much about a shortage in labor supply as it is about a shortage of labor demand.

If you look at April, it appears that there were about 1.1 unemployed workers for every job opening. So there are a lot of jobs out there, there is just still not a lot of labor supply,” he said. 

Raven_Steel_Ad-04
Raven_Steel_Ad-05

For example, the leisure and hospitality industry posted the most gains for April. However, even as it added 331,000 jobs, the industry still remains short by 2.9 million new ones to match pre-pandemic rates.

Carlos Gazitua, president and CEO of Sergio’s Restaurants in Southern California, bemoans the lack of workers, calling it a crisis. “We’ve increased wages. We have about three different staffing agencies that are constantly looking for people,” he said. “Other restaurateurs are walking around neighborhoods passing out flyers. The heroes in our communities are the people currently working for you and me. These people are burnt out,” he noted. 

Other Industry Sectors

The “other services” industry came in next with the most hires at 44,000. This is largely due to an increase in repair and maintenance needs.

The sector also posted gains in personal and laundry services. Meanwhile, local government education added 31,000 jobs as children returned to in-school learning. Then, social assistance increased by 23,000 while financial activities went up by 19,000.

In contrast, professional and business services posted a decline of 111,000 jobs in temporary help. Support services lost 15,000. In addition, courier help lost 77,000 jobs while manufacturing dropped 18,000 positions.

Business Stepping Up Hiring

The disappointing results of the latest jobs report come amid robust economic growth. GDP rose 6.44% in the first quarter of 2021. Consequently, many foresee gains of as much as 10% during the second quarter. 

With COVID-19 restrictions relaxed in many areas, businesses accelerated their hiring pace. Many experts see the frenzied job market to continue throughout the summer. New jobless claims last week fell below 500,000 for the first time since the early days of the pandemic.

Watch the TODAY news video reporting on the disappointing April jobs report as some businesses struggle to find workers:

Why are some businesses having a hard time hiring workers?

Please Select One:

View Results

Loading ... Loading ...

Do you think the April jobs report is something of concern? Why do you think businesses have a hard time getting workers?

Let us know what you think about the current job market in the US. Share your thoughts in the comment section below.

15 Comments

15 Comments

  • Mark Hiatt says:

    I think Biden and Democrats will use this as an excuse to support their emigration agenda, very sad for the American workers.

  • Karen Montelaro says:

    I agree as long as people are pampered with free everthing . Why work and why isn’t the border closed. It’s not fair to to American workers . Shame on Biden

  • Anonymous says:

    This is result of .Decay of moral by years of liberal power .

  • bob says:

    why work when the govt pays ore to stay home than work/

  • Christine says:

    Buden needs to be removed! He us a destroyer!

  • Jeff says:

    Something has to change and fast! The corrupt politicians are destroy this country with the help of the media!

  • Bill Johnson says:

    New generation just doesn’t want to have to work . Anything they want they think it should be free. No pride in any self achievement.

  • Lori says:

    When the government is paying them to sit on there pampered tails and make more than they can make working why would they work?! The free free free generation is in full swing!! The statement our children our future is no longer true!!! Because there proving to be a damn joke!!! This administration has truly run this country into the ground in record time!!!

  • thomas murphy says:

    Folks .What is happening before us .is all by design .These left wing socialist loving politicians that are pushing this as hard as they can .Just to pat themselves on the back and hope theymade the history books for their families legacy as the ones that changed america for the betterment of the country..When one puts themself to gain fame and destroy what gave them and all of us the opportunity for this freedom .They really have mental issues .And they should be examined .You know when the hippia laws where passed and i retired from managing people .I found out some of the folks that we hired had mental issues but was on meds the day we hired them and had no ideal their mental state .Wow! What i went thru when their meds where off .This caused me to retire .I know everyone says insurance could hold itheir preexisting condition could be held aginst them .i have both sons that on had cancer and one is type 1 diabetic.So i get it .But a lot of our issues are folks from the top down that are on meds that make deal with life and this my friends is causeing any where frim the top makings laws that they cannot deal with things naturally to those that their meds cause them to harm all of us and we are not paying attention to the base line facts .Left .right .liberal,guns .knifes,what ever it may be .Is making us make these changes to our country and its people .This is a mental issue .And we had better understand this before we come apart .The whole financial issues from employees to debt .and social and equal rights and compassion .laws we are trying to pass and correct . I believe go back to real mental issues .

  • thomas murphy says:

    Folks .What is happening before us .is all by design .They know exactly what and why they are causing all of this .Why the most of us just want to get thru life with friends and families .There are those that want their families to be the plantation owners and make the rest of us slaves .Its like a joke i heard once .(Ship /Captain Humor).The good news today .Captain says ,There are doubles rations for all you rowers .The bad news is .He wants to water ski ! I just hope once they turn america into a North Korean type country and we are starving .That they dont make all of us slaves .Build things like the china wall or sculptures of Nancy .and Chuck .

  • Kimberly Cay says:

    Godless america corrupted by money top to bottom. Just as any resaurant owner how many people have asked to work “under the table” too keep getting their welfare checks.

  • CM says:

    Honestly, most people aren’t good for a days hard earned labor. This country has gone completely soft. Shutting down almost the entire economy for a year, for a virus with a 99.5% survival rate is pathetic. It’s ridiculous and people of any integrity worth their weight wouldn’t put up with this nonsense. This is the result of liberal colleges telling everyone they are a victim and showing them how to commoditize their victimhood through increasing entitlements. It’s disgusting, i say import immigrants who want to work and export the free-loaders.

  • TROY L. Pike says:

    This is just the beginning it going to get worse and we can’t do anything to stop it

  • wilsennia rice says:

    People r just downright Lazy. They want everything handed to them.

  • Why not says:

    listen few comments Joe Biden promised good paying job where are they. 2 if we take low paying jobs we are paying illegals to be here more than we make so i am all for Americans collecting Unemployment because all of the illegals will be talking there jobs anyway, they will get preferential treatment over White Americans think about that .The president of the United states of America approved it and does it . Not Ability or Education it is Color or one of the Democratic’s 62 genders Lbgt or women even if they can’t do the job . Put them in Fox holes without men just all Women all for that.

Leave a Reply

Your email address will not be published.

Subscribe To Our Newsletter:



Copyright © 2020 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.

[email]
[email]