US Lowest Job Numbers Added In April, Fears of Weak Economic Growth

A recent report from the U.S. Labor Department showed that there was only a small increase in construction jobs in the country while the retail industry has been laying off workers since December 2014.

The total tally of non-farm payrolls is around 160,000 in April compared to 215,000 employees in March, when the Department of Labor reported that the work force was on the rise.

There were only few job gains since September 2015. Even then, the figures of April are the lowest ever and less than the recorded first three-month average employment growth of 200,000.

In February and March, employment opportunities fell by 19,000, according to the report.

"We now only expect one rate hike in 2016, in September, as we believe it will take longer for policy makers to accumulate sufficient evidence that economic and labor market activity is rebounding after a soft start to the year," said Michael Gapen, chief economist at Barclays.

The U.S. unemployment rate remained steady at 5 percent, but the employment participation rate dropped after early signs of stabilization. Gains in employment are now pegged at an average of 192,000 per month, down from last year's average of 229,000. The jobless rate also held steady since last fall at historically low levels.

This performance poses a challenging puzzle to Fed officials as they plan their strategy with respect to an economic slowdown and increasing political pressure across the globe.

The receding job creation after several years of vigorous gains could mean a return to levels regarded as generally healthy for an economy that is growing slowly and reaching full employment.

On the other hand, it could also portend there is trouble ahead since there is uncertainty at home and overseas.

"This report is not going to light a fire under the feet of the Fed to hike in June," said Megan Greene, Manulife Asset Management chief economist.

Tags
Employment, Unemployment, Unemployment rate, Employees
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