The unemployment rate in the U.S. increased to open the second quarter despite job growth in the private sector at the fastest monthly rate in over five years, according to Reuters. On Friday, the Labor Department reported that non-farm payrolls in the U.S. increased by 244,000 in April from the previous month, outpacing economists’ forecast for a 186,000-job increase. The gain was the strongest in nearly one year. The private sector added 268,000 jobs on the month, which marked the most since February 2006, adds Bloomberg.
The report revealed a stark difference between the figures from employers on job creation and the survey of households for the unemployment rate. The number of Americans with jobs dropped by 190,000 during April after a 291,000-position increase the month before. The number of jobless Americans seen in the household survey was up by 205,000 to bring the unemployment rate to 9.0%, surprising economists that had expected an unchanged 8.8% unemployment rate. The Bureau of Labor Statistics reported that “The number of unemployed persons, at 13.7 million, changed little in April,” and Goldman Sachs economists pointed to variation in labor force participation for the change in the jobless rate.