Temp jobs see decrease in April; top-line job growth has way to go before pre-pandemic levels

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US temporary jobs numbers fell in April while the total nonfarm jobs added were below expectations, according to data released today by the US Bureau of Labor Statistics.

The number of temporary help services jobs declined by 111,400 in April when compared to March to a total of some 2.65 million jobs, the BLS reported using seasonally adjusted data. The temp penetration rate — temporary jobs as a percent of total employment — fell to 1.84% in April from 1.92% in March.

Still, the number of temp jobs was up 36.1% from April 2020, which saw the full impact of Covid-19 hit. Compared to the pre-pandemic level in February 2020, there were 296,000 fewer temporary jobs last month.

Overall, the US added just 266,000 jobs in April. The ADP Employment Report released earlier this week reported the US had added 742,000 jobs. The number of jobs added this month is also below the 770,000 added in March and 536,000 added in February, according to the BLS.

“The top line job growth numbers were disappointing this month, illustrating that the US still has a significant way to go to return to pre-pandemic levels of employment,” said Barry Asin, president of Staffing Industry Analysts. “Evidence we see suggests that labor supply is the biggest constraint on growth in both the temporary and total workforce, a condition we expect will ease in the coming months as vaccinations progress, workers feel safer returning to work and extra unemployment benefits expire.”

Jobs data was also revised downward this month for February and March, with the US generating 78,000 fewer jobs than initially reported between the two months.

The US unemployment rate was little changed in April at 6.1% compared to 6.0% in March. It is down from the 14.8% level in March 2020, but the unemployment rate remains above pre-pandemic levels. However, the college-level unemployment rate fell to 3.5% in April from 3.7% in March.

Average hourly earnings for private nonfarm payrolls rose by 21 cents in April to $30.17.