Business

US jobs figures fall far short of expectations

May 8, 2021 7:00 am

US employers hired fewer workers than expected last month despite a huge stimulus package that saw the government send $1,400 (£1,000) cheques to most Americans.

Just 266,000 jobs were added in April and the unemployment rate edged up to 6.1%, according to the Bureau of Labor Statistics.

It said a hiring spree among leisure and hospitality businesses was offset by declining courier numbers.

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In all, 9.8 million remain unemployed.

In February 2020, before lockdowns forced millions into unemployment, 5.7 million people were out of work.

In March, the Biden administration pushed through the $1.9tn stimulus package.

The latest jobs figures were well below the expectations of economists, who had predicted that the gain would be anywhere from 900,000 to 2 million jobs.

That would have been well ahead of the 770,000 jobs that were added in March, which was considered a sign that America’s economic recovery was gaining pace.

In a speech on Friday to “put today’s jobs report in perspective,” President Joe Biden said the new job numbers “show we’re on the right track”.

He defended his bailout as a “year-long effort to rescue our country” and dismissed suggestions “we should be disappointed”.

His speech came after his Democratic party ally, Speaker of the House Nancy Pelosi, issued a statement calling the April report “disappointing” and for Congress to approve more funds for infrastructure spending.