US Nonfarm Payroll Increases by 253,000 in April; Unemployment Inches Lower to 3.4%

The US Bureau of Labor Statistics (BLS) reported Friday (5-5-23) that total nonfarm payroll employment increased by 253,000 in April. In the prior six months, job growth saw an average monthly gain of 290,000.

The BLS is reporting that in April, job growth was once again widespread, with notable growth occurring in the following:

• Professional and business service increased by 43,000, led by gains in professional, scientific, and technical services.
• Health care added 40,000 new jobs in April, led by gains in ambulatory health care services, nursing and residential care facilities, and hospitals
• Leisure and hospitality added 31,000 new jobs, with food service and drinking places posting the largest gains.
• Social assistance added 25,000 in April, above the average monthly gain of 21,000 over the prior 6 months.
• Employment in financial activities increased by 23,000 in April, with gains in insurance carriers leading the way.
• Government employment rose by 23,000 in April. However, overall employment in government is below its February 2020 level by 301,000 positions, or 1.3%.
• Employment in mining, quarrying, and oil and gas extraction rose by 6,000 in April and has increased by 102,000 since a recent low in February 2021.

Employment was little changed in other major industries, including construction, manufacturing, wholesale trade, retail trade, transportation and warehousing, information, and other services.

In April, the unemployment rate declined to 3.4%—down from March’s 3.5% and February’s 3.6%. The number of unemployed persons declined to 5.7 million from March’s 5.8 million and from 5.9 million in February. The BLS says these measures have shown little net movement since March 2022.

The BLS notes that monthly revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors. As a result, the change in total nonfarm payroll employment for February was revised lower by 78,000 (from 326,000 to 248,000) and March was revised down by 71,000 (from 236,000 to 165,000).