Lower than expected jobs, plus previous revisions, reflect businesses in “wait-and-see” posture for economic growth.
The Bureau of Labor Statistics published the Employment Situation for April showing that the US economy added 175,000 jobs. This addition is well below the monthly average of 242,000 over the last calendar year. Additionally, the unemployment rate remained little changed at 3.9 percent.
“This is exactly what the Fed needed to see to reduce rates before November,” Andrew Crapuchettes RedBalloon CEO said. “Small businesses are still absorbing the first quarter’s economic slow-down, and now they’re cautiously watching for signs of economic direction before placing their bets.”
“We see this in the hiring space,” Crapuchettes continued. “Employers aren’t hiring to expand, nor are they reducing staff. They are mostly filling existing openings in essential roles.”
The Freedom Economy Index (FEI) for March showed that small business owners are neither hiring nor firing. In fact, this holding pattern is at the highest level since the FEI began tracking that statistic. Early findings of the May version of the study indicate an uptick in layoffs as companies try to “right size” their workforce.
Founded In 2021, RedBalloon has quickly become America’s largest woke-free job board, connecting employers and employees who prioritize a positive workplace culture free from the divisiveness of cancel-culture mandates.