The April jobs report showed the U.S. added only 266,000 jobs during the month and the unemployment ticked up to 6.1%.
Economists are usually off the mark, but holy cow. They predicted 978,000 job growth and unemployment of 5.8%. I have never seen such a huge difference between prediction and numbers.
Miserable considering the U.S. started to see some growth at the end of former President Donald Trump’s term.
So, of course, President Joe Biden tried to spin the report as a positive for the economy:
“You might think we should be disappointed,” Biden said of the numbers, but claimed the “American Rescue Plan,” which passed in late March, “was designed to help us over the course of a year—not 60 days.””Today, there is more evidence our economy is moving in the right direction,” Biden said, while acknowledging, however, that “it is clear we have a long way to go.”Biden, though, touted his administration, saying 1.5 million jobs have been created since he took office.”This is progress. This is a testament to our new strategy,” Biden said. “We’ve got work to do, to state the obvious, we have work to do.”He added: “Let’s keep our eye on the ball.”
Then Speaker of the House Nancy Pelosi opened her big mouth, using the report to push everyone to pass the bloated American Jobs and Families Plan.
No. Just stop. The numbers should be ticking up because numerous states have started to open. Jobs are coming back.
No doubt people are still scared of COVID and some cannot find child care. But employers also pointed to the enhanced unemployment benefits:
Some employers and economists cite enhanced unemployment benefits as another factor. More than 16.1 million people received unemployment benefits the week ended April 17, the Labor Department said Thursday. That includes gig workers and the self-employed who are typically not eligible for such payments.Under relief bills passed by Congress, those receiving jobless benefits get an additional $300 a week on top of regular state benefits, which average $318 a week, according to the Labor Department. That means the average unemployment recipient earns better than the equivalent of working full time at $15 an hour. Those enhanced benefits are available until September, for a maximum of nearly 18 months—about three times longer than most states typically allow.
The benefits also don’t encourage people to take any old job. People can be picky:
Lorne Zaman lost his jobs as a concert promoter in Los Angeles more than a year ago. He hasn’t worked since, supporting himself on savings, stimulus checks and unemployment benefits, which have been about $750 a week in recent months. The benefits cover his rent and other bills, he said, but don’t leave any extra money at the end of the month.Mr. Zaman, 45, said he’s had no interest in taking available jobs at warehouses or restaurants, but he’s eager to return to the entertainment industry. His former employer told him the company is likely to start recalling workers within the next few months.“I really enjoyed what I did,” he said. “If the government is going to pay you to stay home, you’re going to do that unless that job you really want comes along.”
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