Sharp decline in hiring

The U.S. jobs engine slowed markedly last month, confounding rosy forecasts of the pace of the recovery and sharpening debates over how best to revive a labor market that was severely weakened by the coronavirus pandemic.

Employers added 266,000 jobs in April, the government reported Friday, far below the vigorous gains registered in March. The jobless rate rose slightly to 6.1%.

“It turns out it’s easier to put an economy into a coma than wake it up,” said Diane Swonk, chief economist for the accounting firm Grant Thornton. “It’s understandable, it’s going to take some time; you’re not just going to snap your fingers and get everyone back to work.”

Economists had forecast an addition of about 1 million jobs. The increase for March was revised down to 770,000 from 916,000.

The Alliance for American Manufacturing blamed supply chain problems for the loss of 18,000 jobs in that sector, noting in particular the impact that a shortage of semiconductors has had on the automotive industry.

And many offices are not yet ready to reopen fully.

“I just think it takes a while for businesses to figure out how many people they need,” Swonk said, noting there is still a lot of skittishness on the part of employers and workers. “I don’t view this as terribly troubling or distressing.”

The economy still has a lot of ground to regain before returning to prepandemic levels. Millions of jobs have vanished since February 2020 and the labor force has shrunk.