WASHINGTON, DC—US employment rose by 288,000, and the unemployment rate dropped by 0.4 of a percentage point to 6.3% last month, the US Bureau of Labor Statistics reported Friday morning. Sectors posting job growth were wide ranging, with gains in professional and business services, retail trade, food services and construction.

The report follows a disconcerting one from the Commerce Departmentthat the US economy grew at a seasonally adjusted annual rate of 0.1% in the first quarter—a far cry from the 1.2% increase that Wall Street had been predicting. It has been suggested that the anemic growth was due to the harsh winter weather in the first three months of the year, a theory that gains currency with this morning's job report.

The Labor Department also reported that the number of unemployed persons decreased by 733,000. That measure, along with the unemployment rate, had shown little movement over the prior four months. Job growth has averaged 190,000 per month over the prior 12 months.

Highlights from this morning's report:

Professional and business services added 75,000 jobs in April. Employment in this industry has been increasing by an average of 55,000 per month over the prior 12 months.

Retail trade employment rose by 35,000 in April. Over the past 12 months, employment in this industry has grown by 327,000.

Employment in construction grew by 32,000, with job growth in heavy and civil engineering construction and residential building. Construction has added 189,000 jobs over the past year, with almost three-fourths of the gain occurring in the past 6 months.

Health care employment increased by 19,000 in April, in line with the prior 12-month average gain of 17,000 per month.

Employment in other major industries, including manufacturing, transportation and warehousing, information, financial activities, and government, changed little over the month.

More good news, albeit a bit tempered compared to the unemployment numbers on Friday, will be forthcoming in Fannie Mae's April National Housing Survey, which will be released next week, CEO Doug Duncan says in a prepared statement. That report "is expected to show a gradual improvement in consumers' assessments of buying and selling conditions in the housing market," he says. Still, he warns, even if growth accelerates substantially in the current quarter, "we expect overall growth for the first half of the year to remain subpar against the backdrop of a fragile housing recovery." From Duncan's perspective one macroeconomic take-away from April's performance is that any future interest rate hike decision by the Federal Reserve is at least a year away. And, as the Fed as indicated, he Duncan says, it "will not be associated with a specific unemployment rate target."

Instant Insights /

US Economy Adds 288,000 Jobs in April

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