Unemployment Rate Edges Up as Payrolls See a Dramatic RiseMay 7 2010
May 7, 2010 - The unemployment rate rose unsuspectingly last month, reaching 9.9%. The U.S. Labor Department said that nonfarm payrolls added 290,000 jobs in April, well ahead of economists' predictions. Despite the increase in unemployment, Friday's monthly job report had several indicators pointing to recovery.
The 2010 Census has likely played a roll in the recent increase in job creation. The federal government reportedly added 66,000 temporary positions to help with this project, while private employers added 231,000 jobs in April.
The recent increase in unemployment was largely due to people reentering the labor force after stopping their job search during the recession (the unemployment rate is based off of people who are actively looking for work).
The current employment report comes in lieu of other positive economic indicators. The ISM manufacturing and service indices both showed positive gains during the month of April. Furthermore, according to the Commerce Department, the economy has expanded 3.2% in the first quarter of 2010, its third straight period of growth.