The American job machine is still functioning, despite the weaker markets outside the country.
What evidence do we have for this? It will be the April employment reports that will dictate if it will stay in that position. Friday’s report will also show some signs on how well the economy is set to function after the weakest quarter for the last two years.
Recent reports and statistics shows that availability of employment in the U.S. decreased in April by the most in almost four years, the latest sign that the labor market is cooling. The number of open positions dropped by 325,000, the biggest decline since September 2008, to 3.42 million from 3.74 million the prior month, the Labor Department said today in Washington. Hiring slowed from the prior month and firings climbed.
The decrease in openings coincides with the slowdown in hiring seen in April and May, signaling employers are pulling back as the economy cools. The number of jobs available is down from an average 4.46 million in the two years before the recession began, showing the labor market continues to struggle.
As Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc in New York said, “April employment will be decent.” “A trend-like payrolls number doesn’t do much, but a weak number has a much bigger potential to change expectations. People will revisit the idea of the second-quarter rebound,” as he added.
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