Jobs added, unemployment rate dropped in April

A total of 165,000 nonfarm jobs were added in April and unemployment dropped from 7.6 percent to 7.5 percent, according to the latest U.S. Department of Labor report. Hiring was stronger than expected, and more jobs were added than in the previous two months, easing concerns that government spending cuts were impacting employers, Reuters reported. The jobless rate is now at the lowest level since December 2008, so many companies may find themselves in a position to recruit new employees. They can find skilled talent through staffing agencies.

Economists had predicted April growth would be around 145,000 jobs and the unemployment rate would remain unchanged, according to a Reuters survey of economists. Not only was April job creation higher than expected, but the job data from February and March was revised, showing more jobs were added than previously thought. About 332,000 jobs were created in February, making it the strongest month for permanent worker hiring since 2005. The March statistics were revised from a low 88,000 to about 138,000. The number of people unemployed for longer than 27 weeks declined in April as well, dropping by 258,000. The U.S. economy lost 8.7 million jobs in the financial crisis and has added back approximately 6.2 million during since, MarketWatch said. 

According to the labor report, 31,000 temporary positions were added in April . Professional and technical services experienced a significant increase. 

The average hourly earnings for all employees increased by 4 cents in April, while the average number of hours employees work decreased, meaning employers may be easing the amount of work they ask each employee to perform. 

Employment gains and expanding workforce
The positive job report showed the economy is stronger than expected and still on the road to recovery. 

The decline in the jobless rate reflected a gain in employment rather than a decrease in the working population, Reuters said. The unemployment rate decreased while the size of the labor force increased, which is a positive indicator that workers are feeling more optimistic about their chances of finding work, MarketWatch stated. The number of discouraged workers not searching for jobs because they do not believe any are available decreased. People enter the labor force when they feel they are more likely to find a job. This could be an opportunity for companies looking for new talent through recruitment agencies as new positions open.