The job markets received some positive news this morning after the Labor Department reported that employers added 165,000 new jobs in April, above the 155,000 expected. In addition, the number of jobs created in February and March were revised higher by 114,000, signaling that the economy could be avoiding a spring slowdown.
Within the report it showed that the Unemployment Rate fell to 7.5%, the lowest level since December of 2008, but that number has been declining as the Labor Force Participation Rate (LFPR) has dropped, which is currently at a 35-year low of 63.3. The fall in the LFPR is due to Americans becoming discouraged and have stopped looking for work. The LFPR is the percentage of working-age persons from 16-64 who are employed or are unemployed but looking for a job.
To round out the economic data today was a report from the Institute of Supply Management detailing the current state of the service sector of the U.S. economy. The sector grew in April for the 40th consecutive month registering at 53.1, but below the March number of 54.4. The service sector accounts for nearly 2/3s of the U.S. gross domestic product.
With today’s positive numbers from the labor markets, Stock markets have rallied to all-time high levels as measured by the closely watched S&P 500 Stock index. The S&P hit a record high of 1,618 this morning and has been rallying all year up 13.4% since the close of 1,426 on December 31. The improving economy and the Federal Reserve’s Quantitative Easing stimulus program have been the key factors that have pushed the Stock markets to record levels.
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