Weekly Economic Review: April Employment Report Indicates Slowing Gains in Labor Market

Posted by Laine Smith on 5/6/16 1:50 PM

Topics: Economy

According to ADP’s Employment Report, the job market softened in April. Private payrolls increased by 156,000, which is one of the lowest readings since February 2014, according to Econoday.

ECONOMIC_UPDATE-1.pngImage courtesy of hywards at FreeDigitalPhotos.net

Friday’s Employment Report fell in line with ADP’s projections. Non-farm payrolls increased 160,000 in April but were much lower than the 175,000 to 245,000 consensus levels. This is the weakest pace in seven months, according to the Washington Post.

While the unemployment rate remained unchanged at 5.0 percent, the size of the labor force declined by 2-tenths. 

Last week in the economy:

  • The purchase sector of MBA Mortgage Applications increased 1 percent in the April 29 week, but the refinance sector continued its descent, down 6 percent following a 5 percent drop in the April 22 week. Purchase applications are up 13 percent year-over-year.
  • Initial Jobless Claims jumped 17,000 in the April 30 week but only set the 4-week average 2,000 higher. On a positive note, continuing claims dropped by 8,000 and the unemployment rate for insured workers fell by one tenth.
  • The Bloomberg Consumer Comfort Index fell again in the May 1 week, declining to 42.0 from 43.4. In the past month, readings have been dipping lower.

What’s on economic calendar for the week of May 9, 2016:

  • Tuesday – JOLTS
  • Wednesday – MBA Mortgage Applications
  • Thursday – Jobless Claims
  • Friday – Retail Sales and Consumer Sentiment

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