Economy picked up just 266,000 jobs in April, well below expectations

WASHINGTON – The U.S. economy added just 266,000 jobs in April, a disappointing month of growth that fell well below economists’ estimates despite falling caseloads and increased vaccine distribution around the country.

The April unemployment rate remained relatively unchanged at 6.1%, although economists caution the number is misleadingly low, given how many people have dropped out of the labor force in the last year.

The news increased political pressure in Washington, amid concerns about whether a labor shortage, reported in some pockets of the economy, is slowing down the recovery.

The White House rejected that notion on Friday, calling for patience and saying it will take the economy many months to recover from last year’s trauma.

“More help is needed. … We’re still digging out of an economic collapse that cost us 22 million jobs,” President Joe Biden said. “Let’s keep our eye on the ball. ”The 266,000 jobs added in April represents a sharp drop-off from the 770,000 jobs adds in March.

There are still millions of Americans who have not returned to the workforce since massive layoffs in March and April of 2020, and the March jobs report had seemed like a confirmation that the economic recovery that had stalled out last year was revving up again.

“Given the robust expectations of over a million jobs gained, it’s hard to label this anything but a disappointment,” said Joseph Brusuelas, chief economist at the consulting firm RSM.

The pace of the recovery is a subject of intense focus, as the country remains more than 8 million jobs in the hole after losing 22.3 million jobs in the first two months of the crisis.

At April’s rate of growth, the economy wouldn’t regain those 8 million jobs back until the end of 2023.

The increase in April was driven by gains in leisure and hospitality, which added 330,000 jobs, more than half of those at restaurants and bars. The sector overall still has 2.8 million fewer jobs than it had before the pandemic.

Those gains were offset by large declines in temporary help services and couriers and messaging services, and smaller declines in sectors like manufacturing and retail. Employment in construction was relatively unchanged – a surprise to economists who expected bigger gains amid the reopening, and housing boom.

Some businesses have been complaining to the White House and lawmakers that they are having a hard time recruiting workers, particularly for low-wage, hourly jobs.