Job growth sputtered in April as many industries like manufacturing and leisure and hospitality pulled back on hiring.
Employers added 175,000 jobs in April, the Labor Department said in its monthly payroll report released Friday, missing the 243,000 gain forecast by LSEG economists. It marked the worst month for job creation since October. The unemployment rate, meanwhile, inched higher to 3.9%.
"From a sector standpoint, health care and construction continue to be standout performers for job growth, while gains in the rest of private services (excluding supply chain services) have leveled off after some weakness to end 2023," said Rick Rieder, BlackRock's chief investment officer of global fixed income.
US ECONOMY ADDS 175K JOBS IN APRIL, MUCH WEAKER THAN EXPECTED
The health care sector accounted for the biggest payroll gains in April, adding 56,200 jobs last month. Employment continued to trend upward in doctors' offices (5,600), home health care services (13,900), hospitals (13,500) and nursing and residential care facilities (9,300).
There were also sizable gains within the social assistance sector last month, with payrolls growing by 30,800. The bulk of those jobs took place within individual and family services (22,500).
Hiring in the transportation and warehousing sector was the third-biggest contributor to the headline job gain last month. The industry onboarded 21,800 employees in April. Most of the gains took place within warehousing and storage and couriers and messengers, which both added 7,600 workers.
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There were also notable gains within other industries, including retail trade (20,100) and wholesale trade (10,100).
However, hiring proved to be lackluster beyond those sectors of the economy in April.
Construction hired 9,000 workers in April, while both manufacturing and the government saw their payrolls rise by 8,000.
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A handful of sectors of the economy saw hiring decline last month. Employment within mining and logging fell by 3,000, while professional and business services lost 4,000 jobs. Information saw the steepest loss, shedding 8,000 jobs.
