The U.S. Bureau of Labor Statistics has revealed that payrolls jumped in 39 states and the District of Columbia in April and the unemployment rate fell in 43 states, indicating a strengthening labor market. Leading the nation in payroll increases was Texas with 64,100 new hires, followed by California with 56,100 more jobs. The unemployment rate rose in just two states.
Labor market growth is also giving households more means to spend after the economy experienced slow growth during Q1 2014. The data support the plan out of the Federal Reserve to continue its scaling back of the massive economic stimulus plan put in place as a result of the recent recession, even as it remains accommodative to potential economic changes.
“There is still slack in the labor market – it’s not what it would be on all cylinders – but we are seeing continuous improvement,” Russell Price, senior economist at Ameriprise Financial Inc., said. “The U.S. economy is poised to gain a little bit more traction.”