US adds 2,400 temp jobs in April while total employment increases by 428,000

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The US added 2,400 temp jobs in April from March to a total of more than 3.1 million while total nonfarm employment increased by 428,000 on a seasonally adjusted basis, the US Bureau of Labor Statistics reported today.

However, the temp penetration rate — temporary jobs as a percent of total employment — edged down to 2.07% in April from 2.08% in March.

The US unemployment rate held steady at 3.6% in April. The college-level unemployment rate held steady as well at 2.0%.

“The strong overall job gains in April highlight the continued improvement in the US labor market,” said Barry Asin, president of Staffing Industry Analysts. “With temporary help employment as a percentage of overall employment remaining close to all-time high levels, record high demand for labor and rising temp wages, we anticipate ongoing growth in temporary employment.”

In April, job growth was widespread, according to the BLS, with gains in “leisure and hospitality,” manufacturing and “transportation and warehousing.” Total US employment was 151.3 million in April, still down 0.8% from its pre-pandemic level in February 2020.

Leisure and hospitality gained 78,000 jobs in April while manufacturing added 55,000. Transportation and warehousing saw an increase of 52,000 jobs.

The US had added 428,000 jobs in March (same as added in April) and 714,000 jobs in February.

Average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents in April to $31.85.

“Today’s jobs report showed further job gains in April, following months of solid growth in the first quarter of 2022,” according to commentary by The Conference Board. “The labor market continues to expand, especially in in-person services and in other industries that have yet to fully recover job losses incurred since the pandemic. Severe labor shortages continue to drive up wages, adding additional pressure on inflation.”

The Conference Board noted labor shortages continue to impact recruiting and retention. It also forecast the unemployment rate to get close to 3% by the end of the year, and wage growth is expected to accelerate.