Friday, May 8, 2026

April’s Jobs Report No Success After Employment Gain – Latent Demand Little Dropped per AJSN of 16.5 Million

One of many problems of emphasizing a single result in the monthly Bureau of Labor Statistics Employment Situation Summary is that it may not be representative of the outcomes as a group.  April’s edition, which came out this morning, was a prime example.

The number of net new nonfarm payroll positions almost doubled the published estimate I saw, reaching 115,000 instead of 67,000.  From there, although seasonally unadjusted joblessness fell from 4.3% to 4.0%, the adjusted version did not worsen at 4.3%, unadjusted unemployment was seasonally off 465,000 to 6.77 million, and long-term unemployed held at 1.8 million, it was a negative month.  The count of adjusted jobless rose 200,000 to 7.4 million.  The two figures showing how common it was for Americans to be working or just short of that, the employment-population ratio and the labor force participation rate, each dropped 0.1% to reach 59.1% and 61.8%.  The number of people working part-time for economic reasons, or holding short-hours positions while seeking thus far unsuccessfully full-time ones, soared 400,000 to 4.9 million.  Average hourly private nonfarm payroll earnings again gained less than inflation, 3 cents per hour, to $37.41.  Despite April being a seasonally stronger month than March, the unadjusted count of employed moved up only 17,000, to 162,781,000. 

The American Job Shortage Number, the seasonally unadjusted metric showing how many new and unadvertised positions could be suddenly filled if all knew they would be easy to get, lost about one third of a million, less than seasonal expectations, to the following:

 

The inputs, except for classic unemployment which deducted over 500,000, offset one-third of the latter’s subtraction, with most coming from increased numbers of those not looking for the previous year, those wanting to work but unavailable for now, those not wanting a job, and those in school or training.  The share of the AJSN from this official joblessness shrank from 39.3% to 37.0%. 

We did not make progress in April.  As well as in the results above, the year-over-year comparison showed the AJSN up 423,000, with more from nearly all of the secondary categories above as well as 169,000 from unemployment, which was almost 200,000 lower in April 2025.  More people are falling behind in pay.  More people – 650,000 additional over the month – have left the labor force, with 422,000 more claiming no work interest.  The number of Americans going part-time for economic reasons, an indicator of hardship while working that is not reflected in other statistics, is again pushing post-pandemic highs.  It is good to get more jobs, but this time that wasn’t enough.  The turtle stayed right where he was.

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