U.S. Hit With Mixed GDP/Jobs Numbers
A good jobs report was released Friday, but it came days after weak growth in a GDP report.
Read more on the jobs report from the Associated Press:
Employers added a sizable 288,000 jobs in April.
Hiring in February and March was better than first thought.
The unemployment rate plunged to 6.3 percent from 6.7 percent.
At first glance, Friday's U.S. jobs report suggested that the agonizingly slow 5-year-old economic recovery had burst into a full sprint.
Yet several cautionary signs emerged from the report, starting with that spectacular plunge in the unemployment rate.
Here's why: The government uses two surveys for the jobs report. The job gain comes from a survey of businesses, the unemployment rate from a survey of households. Sometimes, the two conflict.
The survey of businesses showed 288,000 more jobs. Yet the household survey, in calculating unemployment, found that 73,000 fewer people had jobs.
Why did the unemployment rate sink? Because 806,000 fewer people were in the workforce. Many retired or ended their job hunts. And fewer-than-expected people began looking for work.
The unemployment rate typically drops when fewer people seek work: If they're not hunting for a job, they're not counted as unemployed.
Dallas Federal Reserve Bank President Richard Fisher was on “Sunday Morning Futures” to discuss the latest numbers.
He said the private sector is beginning to hire, and he would like to see that continue and increase.
However, he noted a “skills mismatch,” explaining that there are jobs available in high-skilled areas, but people lack the necessary training for them.
Watch his full interview above.
ICYMI: Past segments from 'Sunday Morning Futures' on Fox News: