The April jobs report concluded that as hiring slowed, workers dropped out of the labor force in droves, which is not a good sign for the job market going forward. The U.S. economy added only 115,000 jobs in the month, which is down from March when employers created 154,000 jobs, the Labor Department reported on Friday. Meanwhile, the unemployment rate fell to 8.1 percent as 342,000 workers dropped out of the labor force. The participation of the adult population in the job market is at 63.6 percent, the lowest level since 1981.
Chief Economist John Silvia of Wells Fargo said, “If there are less people working, then your potential for what the economy can produce is reduced. You’ve also got a problem in financing government spending and Social Security, Medicaid and food stamps, etc. Anyway you look at it, it’s worrisome.” In April, retailers added 29,000 jobs, while restaurants and bars added 20,000. Temporary agencies hired 21,000 people and manufacturers hired 16,000, while the government continued to slash workers. Of the 8.8 million jobs lost in the economy, roughly 3.7 million have been added back. About 12.5 million Americans remain unemployed, and 41.3 percent of them have been so for six months or more.
