U.S. Economy Adds 288,000 Jobs, Unemployment Rate Hits Lowest Point Since 2008
The Labor Department announced Friday that Americans have gained jobs at a faster rate in April than in the last two years, marking the best month of job creation since 2012.
The addition of more jobs signals that the economy has recovered from stagnation because of this winter's severe weather, The Wall Street Journal reports.
The Labor Department said that non-farm employment grew to a seasonally adjusted 288,000 in April, which is the best month for job creation since January 2012, and the second-best month since the economy began rebounding from the Great Recession in mid-2009.
Figures also show that payrolls grew in February and March more than was previously estimated. The economy added 203,000 jobs in March -- up from the 192,000 that was initially reported -- and 222,000 in February -- up from 197,000.
The jobless rate, which was obtained from surveying households, fell to 6.3 percent from 6.7 percent, hitting the lowest rate since September 2008. The addition of jobs came after the overall labor force shrank in April.
The drop in joblessness can reassure the Federal Reserve that the economy is in better shape as it winds down its bond-buying program. The Fed cut its monthly purchases by $10 billion to $45 billion this week as bank officials said the economy seems to be improving.
Gross domestic product also grew at an annual pace of 0.1 percent in the first three months of the year, the Commerce Department reported.
While job growth averaged at just 114,000 in December and January, there has been three consecutive months of job creation above 200,000.
Economists expect GDP growth to exceed 3 percent in the current quarter.
The private sector provided the bulk of job growth with private companies adding 273,000 jobs. Government jobs also grew by 150,000.
While the jobless rate is still historically high, with the jobless rate still above the 4-5 percent in the months leading up to the recession, more working-age Americans in the work force means those in jobs or looking for work fell to a three-decade low in April.
The professional and business services industry grew by the highest percentage, adding 75,000 jobs. Temporary-service jobs also grew by 24,000.
Retail jobs increased by 35,000, and construction jobs grew by 32,000. The health care sector also added 19,000 jobs.
However, wages stayed the same with the average hourly wage for private sector workers at $24.31 and with the average workweek consisting of 34.5 hours.
Yet, other factors show that the economy is improving, including an increase in manufacturing activity, which rose to its highest level in four months in April. Consumers also spent at a faster pace in March than in almost five years, the Commerce Department reported.