The latest jobs report is in, and it’s not looking good for the Biden administration.
According to top financial reports on Friday morning, the economy appears to be struggling more than ever as America struggles to lift itself from its lockdown policies and record-high unemployment.
A report from CNBC found that hiring was lower than expected in April, with nonfarm payrolls increasing by a lower than expected 266,000. The unemployment rate rose to 6.1 per cent amid a shortage of available workers. The Dow Jones estimates had been 1 million new jobs and an unemployment rate of 5.8 per cent.
Bloomberg reports that the numbers are much worse than expected. “Something seems very off: only 266,000 jobs created in April, and the unemployment rate ticked up to 6.1%, according to the report,” wrote Bloomberg’s Fed reporter Matthew Boesler.
“The unemployment rate rose, manufacturing jobs fell. This is a much weaker than expected report that really changes the current narrative on reopening in the economy,” added Bloomberg editor Chris Anstey.
“A spike in futures before the report and then a quick drop,” noted Bloomberg markets reporter Kriti Gupta. “The dollar and yields are tanking. Gold to session highs. This is a massive disappointment to markets -- risk off behavior across the board.”
“We’re going to see a much more intense debate now about whether extended, enhanced unemployment benefits are keeping people at home and not taking jobs,” declared Anstey. “We my also see discussion about whether vaccine hesitancy and the lingering pandemic is holding back the economic recovery.”
According to Bloomberg, the White House has planned a “high-level response” to the report with President Joe Biden meeting with his economic team and Treasury Secretary Janet Yellen later on Friday.
“The narrative could well be that the weak report today showcases why the administration went ahead with the $1.9 trillion pandemic-relief bill in March. And why sustained government efforts are needed with the $4 trillion in long-term economic proposals that Biden has laid out,” Antsey reported.
A separate report from CNN noted that anyone who’s not yet felt the effects of inflation should expect it in the near future, warning, “if you haven’t felt [inflation] yet, it’s coming.”
“You can expect higher prices for toilet paper, diapers, soft drinks, plane tickets, a tank full of gas,” CNN chief business correspondent Christine Romans reported. “Whirlpool is raising prices of some of its appliances by up to 12%.”