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Transmission of material in this statement is embargoed until
8:30 a.m. (ET) May 7, 2021.
Statement of
William W. Beach
Commissioner
Bureau of Labor Statistics
Friday, May 7, 2021
Total nonfarm payroll employment rose by 266,000 in April,
and the unemployment rate was little changed at 6.1 percent.
Notable job gains in leisure and hospitality, other services,
and local government education were partially offset by losses
in temporary help services and in couriers and messengers.
Substantial job losses related to the coronavirus (COVID-
19) pandemic first occurred in March (-1.7 million) and April
(-20.7 million) of 2020. As economic activity resumed,
employment increased by 12.6 million from May through November
but declined again in December (-306,000) following a surge in
the number of coronavirus cases. Job growth restarted in January
of this year, and nonfarm payroll employment has increased by
1.8 million over the past 4 months. However, payroll employment
is down by 8.2 million, or 5.4 percent, from the pre-pandemic
employment peak in February 2020.
Leisure and hospitality gained 331,000 jobs in April, as
pandemic-related restrictions continued to ease in many parts of
the country. This followed job gains of 619,000 in February and
March combined. Within the industry, job growth in food services
and drinking places (+187,000) accounted for more than half of
the April increase. Employment also rose in amusements,
gambling, and recreation (+73,000) and in accommodation
(+54,000). While leisure and hospitality has added 5.4 million
jobs over the year, employment in the industry is down by 2.8
million, or 16.8 percent, since February 2020.
In April, employment in the other services industry
increased by 44,000 but is down by 352,000 since February 2020.
Over the month, job gains occurred in repair and maintenance
(+14,000) and in personal and laundry services (+14,000).
Local government education added 31,000 jobs in April,
following a gain of 28,000 in the prior month. Employment in
local government education has fluctuated in recent months but
is down by 611,000 since February 2020.
In April, social assistance employment rose by 23,000, with
about half of the gain in child day care services (+12,000).
Employment in social assistance is 286,000 lower than in
February 2020.
Financial activities added 19,000 jobs in April, with most
of the gain in real estate and rental and leasing (+17,000).
Employment in financial activities is down by 63,000 since
February 2020.
Within professional and business services, employment
decreased by 111,000 in temporary help services in April,
following little change in the previous month. Employment in
temporary help services is 296,000 lower than in February 2020.
Elsewhere in professional and business services, job losses
occurred in business support services in April (-15,000), while
architectural and engineering services (+12,000) and scientific
research and development services (+7,000) added jobs.
Within transportation and warehousing, employment in
couriers and messengers fell by 77,000 in April but is up by
126,000 since February 2020. Air transportation added 7,000 jobs
in April. Overall, employment in transportation and warehousing
is down by 142,000 since February 2020.
Manufacturing employment edged down by 18,000 in April.
Within the industry, job losses in motor vehicles and parts
(-27,000) and wood products (-7,000) were partially offset by
job gains in miscellaneous durable goods (+13,000) and chemicals
(+4,000). Since February 2020, employment in manufacturing is
down by 515,000.
Employment in retail trade changed little in April
(-15,000), following a gain in the prior month (+33,000). Within
the industry, April job losses in food and beverage stores
(-49,000), general merchandise stores (-10,000), and gasoline
stations (-9,000) were partially offset by job gains in sporting
goods, hobby, book, and music stores (+20,000); clothing and
clothing accessories stores (+10,000); and health and personal
care stores (+9,000). Overall, employment in retail trade is
400,000 lower than in February 2020.
Health care employment changed little in April (-4,000).
Ambulatory health care services added 21,000 jobs, while nursing
care facilities continued to lose jobs (-19,000). Health care
employment is 542,000 below the February 2020 level.
Construction employment was unchanged in April. Employment
in the industry is up by 917,000 over the year but is 196,000
lower than in February 2020.
Employment in other major industries--including mining,
wholesale trade, and information--showed little change over the
month.
Average weekly hours for all private-sector workers
increased by 0.1 hour in April to 35.0 hours. In April, the
average workweek for manufacturing was unchanged at 40.5 hours.
Average hourly earnings of all employees on private nonfarm
payrolls increased by 21 cents to $30.17 in April, following a
decline of 4 cents in the prior month. The data for April
suggest that the rising demand for labor associated with the
recovery from the pandemic may have put upward pressure on
wages. Since average hourly earnings vary widely across
industries, the large employment fluctuations since February
2020 complicate the analysis of recent trends in average hourly
earnings.
Turning to the labor market indicators from the household
survey, both the unemployment rate and the number of unemployed
people changed little in April, at 6.1 percent and 9.8 million,
respectively. Both measures have fallen from their recent peaks
in April 2020 but remain well above their February 2020 levels
(at 3.5 percent and 5.7 million, respectively).
Among the major worker groups, the unemployment rates for
adult men (6.1 percent), adult women (5.6 percent), teenagers
(12.3 percent), Whites (5.3 percent), Blacks (9.7 percent),
Asians (5.7 percent), and Hispanics (7.9 percent) showed little
or no change in April.
Among the unemployed, the number of people on temporary
layoff was little changed at 2.1 million in April. This measure
is down considerably from a peak of 18.0 million in April 2020
but is 1.4 million higher than in February 2020. The number of
permanent job losers, at 3.5 million, was little changed in
April but is 2.2 million higher than in February 2020.
By duration of unemployment, the number of people searching
for work for less than 5 weeks increased by 237,000 in April to
2.4 million. The number of people unemployed for 27 weeks or
more (often referred to as the long-term unemployed) was
essentially unchanged over the month at 4.2 million but is up by
3.1 million since February 2020. In April, the long-term
unemployed accounted for 43.0 percent of the unemployed.
The labor force participation rate, at 61.7 percent, was
little changed over the month. This measure is 1.6 percentage
points lower than in February 2020. The employment-population
ratio, at 57.9 percent, also changed little in April. This
measure is up by 0.5 percentage point since December 2020 but is
3.2 percentage points lower than in February 2020.
In April, the number of people working part time for
economic reasons decreased by 583,000 to 5.2 million, reflecting
a drop in the number of people whose hours were cut due to slack
work or business conditions. The number of people working part
time for economic reasons is down from a peak of 10.9 million in
April 2020 but is 845,000 higher than in February 2020.
At 6.6 million, the number of people not in the labor force
who currently want a job changed little in April. This measure
is down from a peak of 9.9 million a year earlier but is 1.6
million higher than in February 2020. Among those not in the
labor force who wanted a job, the number of people marginally
attached to the labor force was essentially unchanged at 1.9
million in April. (People who are marginally attached to the
labor force had not actively looked for work in the 4 weeks
prior to the survey but had looked for a job within the last 12
months.) The number of discouraged workers, a subset of the
marginally attached who believed that no jobs were available for
them, was little changed over the month at 565,000.
As in previous months, some workers affected by the
pandemic who should have been classified as unemployed on
temporary layoff in April were instead misclassified as employed
but not at work. Since March 2020, BLS has published an estimate
of what the unemployment rate would have been had misclassified
workers been included among the unemployed. Repeating this same
approach, the seasonally adjusted April unemployment rate would
have been 0.3 percentage point higher than reported. Additional
information about the misclassification, as well as information
about response rates for both the household and establishment
surveys, is available on the BLS website at
www.bls.gov/covid19/employment-situation-covid19-faq-april-
2021.htm.
Looking at supplemental pandemic-related measures from the
household survey (these supplemental data are not seasonally
adjusted), the share of employed people who teleworked in April
because of the coronavirus pandemic declined to 18.3 percent.
These data refer only to employed people who teleworked or
worked at home for pay at some point in the last 4 weeks
specifically because of the pandemic; they do not include all
instances of telework.
In April, the number of people who reported that they had
been unable to work because their employer closed or lost
business due to the pandemic--that is, they did not work at all
or worked fewer hours at some point in the last 4 weeks due to
the pandemic--fell by 2.0 million to 9.4 million. Among those
who reported in April that they were unable to work because of
pandemic-related closures or lost business, 9.3 percent received
at least some pay from their employer for the hours not worked,
little changed from the prior month.
Among those not in the labor force in April, 2.8 million
people were prevented from looking for work due to the pandemic,
down from 3.7 million in the prior month. (To be counted as
unemployed, by definition, individuals must either be actively
searching for work or on temporary layoff.)
In summary, nonfarm payroll employment rose by 266,000 in
April, and the unemployment rate was little changed at 6.1
percent.