Unemployment: And the good news is ….
We added jobs last month. In fact, according to Reuters we added more to US nonfarm payrolls than we have in 4 years.
290,000 jobs were added in April (66,000 government and the rest private sector). What this points to is a number that is higher than that which is necessary to keep the unemployment percentage stable (around 140,000 a month) because of the natural turbulence within the jobs market.
On the other hand, with some adjustments, the unemployment rate itself went up .02 percentage points to 9.9% (Reuters mistakenly claims it stayed at 9.7%).
Now this is unquestionably good news. However, given that 8.2 million jobs have been lost in the recession, a few thousand a month increase isn’t going to change the unemployment rate drastically any time soon. Most see that rate coming down very slowly over years. And, as the bad news in Europe continues to grow and markets for American goods there decline, it is entirely possible that it will flatten out again or even spike a bit before it heads back down.