April’s Job Hotspots

April Nonfarm Payroll Data Exceeds Expectations

The latest data from the Bureau of Labor Statistics shows that nonfarm payrolls increased by 253,000 in April, exceeding economists’ expectations. This broad-based growth across industries demonstrates the resilience of the labor market in the face of recessionary concerns and a banking crisis.

Health Care and Social Assistance Lead the Way

Almost 1 in 4 of the new jobs were in health care and social assistance, with about 64,200 added in the month. Ambulatory services alone accounted for 24,000 of those new jobs, while nursing and residential care facility payrolls rose by 9,000 and hospital payrolls increased by 7,000 from the prior month. Although health care added fewer jobs than it has on average over the past six months, the social assistance sector saw a larger increase than usual, helped by gains in the individual and family services sub-industry.

Professional and Business Services Also See Growth

Professional and business services saw the second-largest growth in April at 43,000, which is more jobs than it has added in an average month over the past half-year. Professional, scientific and technical service jobs accounted for the bulk of the sector’s gains with a 45,000 increase. However, temporary service roles continued to slide with a 23,300 month-over-month loss, putting the sub-sector’s total workforce nearly 175,000 jobs off its peak in March 2022.

Construction and Financial Activity Jobs Rebound

April’s broad gains made up for drops seen in previous months for a handful of industries. Construction gained 15,000 jobs in April after losing 11,000 in March, while payrolls tied to financial activity jobs grew by 23,000 in April, more than erasing losses after shedding a modest 1,000 in the prior month.

What Does This Mean for the Labor Market?

While the labor market has remained strong, total job growth is relatively muted. The three-month moving average came down to 222,000 with April’s data, which is less than half of its size a year ago. This indicates signs of moderation and could show the Federal Reserve that the famously hot labor market is, in fact, showing indications of cooling. However, workers, employers, and policymakers should still be encouraged about the current state of affairs.

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