Unemployment has risen for the first time in over a year, signaling bad news for the “resurgent” Biden economy.
According to The Washington Free Beacon:
WASHINGTON (Reuters) – U.S. job growth unexpectedly slowed in April, likely restrained by worker shortages that have left businesses scrambling to meet booming demand as the economy reopens amid rapidly improving public health and massive financial help from the government.
The Labor Department’s closely watched employment report on Friday, which showed a plunge in temporary help jobs – a harbinger for future hiring – as well as decreases in manufacturing and retail employment, could sharpen criticism of generous unemployment benefits.
The enhanced jobless benefits, including a government-funded $300 weekly supplement, pay more than most minimum-wage jobs. The unemployment benefits were extended as part of a massive $1.9 trillion COVID-19 pandemic relief package approved in March.
Nonfarm payrolls increased by only 266,000 jobs last month. Data for March was revised down to show 770,000 jobs added instead of 916,000 as previously reported. Economists polled by Reuters had forecast payrolls would advance by 978,000 jobs.
Employment is 8.2 million jobs below the peak employment rate that happened in February of 2022.