U.S. sheds 20,000 jobs in April, less than expected
WASHINGTON -- The nation's employers shed 20,000 jobs in April, while wages stalled, leaving Americans struggling to keep up with rising energy and food costs, the Labor Department said Friday.
The nation's unemployment rate, based on a separate survey of households, dipped to 5% in April from 5.1% in March. The employment picture was less brutal that the 75,000 job loss economists had predicted, Still, it reflects a badly stumbling economy. The Commerce Department this week said the economy grew at a barely perceptible 0.6% annual rate in the first quarter of the year.
There are now 7.6 million Americans out of work, compared with 6.8 million a year ago. The jobless rate is highest for teenagers at 15.4%, African-Americans at 8.6% and Hispanics at 6.9%.
"The economy has clearly slipped into a mild jobs recession because the housing meltdown and credit market turmoil has spread to the broader economy," said Steven Wood of Insight Economics. "Persistent job losses will pull the overall economy into recession."
In a sign that the nation's economic woes are ongoing the Federal Reserve announced shortly before the job numbers were released that it is increasing the amounts it will loan to commercial banks and accepting wider collateral for loans to investment banks. The actions are intended to alleviate a global credit criss that has dampened economic growth.
The Labor Department said the average workweek dipped during the month, while factory overtime was down. Average hourly earnings for jobholders rose 0.1% to $17.88 in April; average weekly earnings fell 0.2% in April to $602.56.
Over the past year, average hourly earnings rose 3.4% and weekly earnings were up 3.1%. But consumer inflation has risen 4% in the past 12 months.
In other economic news, the Commerce Department reported that orders to U.S. factories rose a bigger-than-expected 1.4% in March, after two straight months of declines.
Job losses were once again concentrated in the construction, manufacturing and retail sectors, according to the report's payroll survey.
Related Stories
ABC News Live