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Saturday 4 May 2019
Unemployment hits 49-year low as U.S. employers step up hiring

By CHRISTOPHER RUGABER es and on store shelves
AP Economics Writer and a narrowing of the
WASHINGTON (AP) — Hiring U.S. trade deficit. By con-
accelerated and pay rose trast, consumer spending
at a solid pace in April, set- and business investment,
ting the stage for healthy which more closely reflect
U.S. economic growth to the economy's underlying
endure despite fears of a strength, were relatively
slowdown earlier this year. weak.
Employers added 263,000 But American households
jobs, with the unemploy- have become more confi-
ment rate dropping to a dent since the winter and
five-decade low of 3.6% are ramping up spend-
from 3.8%, though that ing. Consumer spending
drop partly reflected an surged in March by the
increase in the number of most in nearly a decade.
Americans who stopped A likely factor is that steady
looking for work. Average job growth and solid wage
hourly pay rose 3.2% from increases have enlarged
12 months earlier, match- Americans' paychecks.
ing March's year-over-year Businesses are also spend-
increase. ing more freely. Orders to
Friday's jobs report from the In this March 7, 2019, photo visitors to the Pittsburgh veterans job fair meet with recruiters at Heinz U.S. factories for long-last-
government showed that Field in Pittsburgh. ing capital goods jumped
economic growth remains Associated Press in March by the most in
brisk enough to encourage eight months. That sug-
strong hiring nearly a de- mist at PNC. President Donald Trump and reminding them that gested that companies
cade into the economy's Trump administration of- has also pressed the Feder- most applicants have mul- were buying more comput-
recovery from the Great ficials insisted that the job al Reserve to cut short-term tiple job opportunities, he ers, machinery and other
Recession. The economic market's gains were a result interest rates because infla- said. "Two years ago, I don't equipment to keep up
expansion, which has fu- of the president's tax cuts tion remains low. But most know that I ever had that with growing customer de-
eled 103 straight months of and deregulatory policies. economists said the healthy conversation." mand.
hiring, is set to become the "We have entered a very jobs picture, against the The brightening economic Years of steady hiring have
longest in history in July. strong and durable pros- backdrop of low inflation, picture represents a sharp sharply lowered unemploy-
"All of the recession talk ear- perity cycle," said Larry Kud- would reinforce the Fed's improvement from the start ment for a range of popu-
lier in the spring was much low, director of the White current wait-and-see ap- of the year. At the time, the lation groups. The unem-
ado about nothing," said House's National Economic proach. The Fed raised government was endur- ployment rate for women
Gus Faucher, chief econo- Council. rates four times last year but ing a partial shutdown, the fell last month to 3.1%, the
has signaled that it doesn't stock market had plunged, lowest point since 1953. The
foresee any rate increases trade tensions between the rate for Latinos dropped
this year. United States and China to 4.2%, a record low since
Investors welcomed the were flaring and the Fed 1973, when the govern-
April jobs data by sending had just raised short-term ment began tracking the
stock prices broadly high- rates in December. Ana- data.
er. The Dow Jones Indus- lysts worried that the econ- For Asians, joblessness has
trial Average closed up 197 omy might barely expand matched a record low of
points, or 0.75%. in the first three months of 2.2%. And the unemploy-
Jason Guggisberg, vice the year and might even ment rate for veterans of
president of Adecco USA, tip into recession in the en- the Iraq and Afghan wars
a staffing firm that finds suing months. dropped to 1.7%, also a re-
temporary and permanent Yet the outlook soon bright- cord low.
hires for business clients, ened. Chair Jerome Pow- Most of last month's job
said companies are doing ell signaled that the Fed growth occurred in ser-
much more to attract work- would put rate hikes on vices, which includes both
ers. They are offering more hold. Trade negotiations higher-paying jobs in infor-
perks — like free lunches or between the U.S. and Chi- mation technology and
weekly happy hours — and na made some progress. lower-paying temporary
allowing more flexible work The economic outlook in work. Manufacturers add-
schedules. some other major econo- ed just 4,000 jobs. Construc-
Some are also raising pay, mies improved. Share pric- tion firms gained 33,000,
though Guggisberg said es rebounded. mostly on public infrastruc-
many of them have to be And in the end, the govern- ture projects.
persuaded to do so. Adec- ment reported that the U.S. Professional and business
co often has to show its cli- economy grew at a 3.2% services, which include IT
ents data about how many annual rate in the January- networking jobs as well as
jobs are available in a giv- March period — the stron- accountants and engi-
en area and how few work- gest pace for a first quarter neers, led the gains with
ers are actually searching since 2015. That said, the 76,000. Education and
for jobs. growth was led mostly by health care added 62,000
"We are constantly having factors that could prove jobs, while a category that
conversations with clients temporary — a restocking mostly includes restaurants
about supply and demand" of inventories in warehous- and hotels gained 34,000.q