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Analysts Debate Significance of April Jobs Report
Published on May 6, 2011
Read our article, 'Analysts Debate Significance of April Jobs Report' at 'Time to Start Up,' the small business blog by BizFilings.
Despite noting an increase in the national unemployment rate, Friday's jobs report is being viewed - at least among optimistic analysts - as indicative of an overall positive trend for the U.S. economy.
According to data from the Labor Department, April noted the addition of 244,000 nonfarm jobs - up substantially from the 221,000 positions created the month before. However, unemployment grew to 9 percent, marking the first increase in that figure since November.
Tig Gilliam, CEO of global recruitment firm Adecco Group North America, points out that what's holding the job market back is essentially the stagnation of one sector.
"The [private sector] strength is really everywhere with one exception, and that's construction," Gilliam told U.S. News and World Report. "It makes it clearer and clearer from an economic perspective that the housing market is the drag we have to deal with right now."
Despite slow housing starts, another critical segment of the economy, small businesses, has been showing greater signs of improvement, as reports released this week show gains in both borrowing and hiring for the sector.
Other economists have argued that conditions should begin to take a major upswing later this year, suggesting entrepreneurs forming a company may want to follow trends closely.