US jobless rate plunges
- Published: 2/05/2014 at 07:58 PM
- Online news:
WASHINGTON: The US unemployment rate plunged in April to its lowest level since September 2008 as employers added 288,000 jobs, the most in two years.
The figures are a clear sign that the economy is picking up after a brutal winter slowed growth.
The Labor Department said on Friday that the unemployment rate fell to 6.3% from 6.7% in March. But the drop occurred in large part because the number of people working or seeking work fell sharply. People aren't counted as unemployed if they're not looking for a job.
Employers also added more jobs in February and March than previously estimated. The job totals for those two months were revised up by a combined 36,000.
Job creation is accelerating: Employers added an average of 238,000 jobs the past three months. That's up from 167,000 in the previous three.
Hiring last month was broad-based and included higher-paying jobs: Manufacturing gained 12,000 positions. Construction added 32,000. Professional and technical services, which include accounting and engineering positions, gained 25,100 jobs.
The jump in hiring comes after a spate of other data showed that the US economy is improving. Consumers are ramping up spending, businesses are ordering more goods and manufacturers are expanding.
The strengthening numbers show that harsh snowstorms and frigid cold in January and February were largely to blame for the economy's scant growth at the start of the year.
The economy barely expanded from January through March, rising just 0.1%, down from a 2.6% rate in the final three months of 2013.
Americans spent more in the first quarter on utilities and healthcare, but their spending on goods barely rose. Businesses also reduced spending, and exports fell.
Still, other data indicate that the economy was already rebounding in March and probably improved further in April. Consumers bought more cars and spent more at shopping malls. Overall consumer spending soared in March by the most in four-and-a-half years.
All told, the positive news has led most economists to forecast a strong rebound in economic growth, to a 3.5% annual rate in the current April-June quarter. And growth should reach nearly 3% for the full year, up from 1.9% in 2013, they expect.
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Writer: Associated Press