Recovery ‘Slowing’ as Companies Add Fewer Jobs Than Expected

May 4, 2022

Private U.S. businesses added just 247,000 jobs in April — 143,000 fewer than expected. Small businesses were the “primary culprit”, losing 120,000 workers month-over-month.

CNBC: Private payrolls increased by just 247,000 for the month, well below the 390,000 Dow Jones estimate. That was a big decline from March, which saw an upwardly revised gain of 479,000.

A drop-off in small business hiring was the primary culprit for the disappointment, as companies with fewer than 50 workers saw a decline of 120,000. The issue was particularly acute in those with fewer than 20 employees, which lost 96,000 workers on the month.

The slowing labor market rebound, shrinking economy, and rising costs and interest rates are a threat to the economic recovery. Inflation, fueled by reckless government spending, remains at a 40-year high. Former Fed Vice Chair Roger Ferguson described a recession as “inevitable,” and another economist said there are “growing risks” with the economy.

Fox Business: The U.S. economy cooled markedly in the first three months of the year, as snarled supply chains, record-high inflation and labor shortages weighed on growth and slowed the pandemic recovery.

The latest data comes amid growing fears on Wall Street that a recession is looming in the next two years as a result of the Russian war in Ukraine, soaring inflation and an increasingly hawkish Federal Reserve. With the consumer price index at a 40-year high, the U.S. central bank is moving quickly to raise rates in an effort to cool demand. 

Bottom Line: The mismanaged economic recovery — and possible looming recession — is a threat to American families’ financial security.