Hiring Gain Is Smallest In Two Years
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Employers in America probably added 100,000 workers to payrolls this month, the fewest in two years and a sign the economy was still struggling with a decline in housing and soft business investment.
The gain in hiring is the median estimate of economists surveyed by Bloomberg News and would follow a 180,000 increase in March. The Labor Department’s May 4 report is also projected to show the unemployment rate rose to 4.5% from 4.4%.
The forecasts reflect firings at construction companies and manufacturers, economists said. Fewer jobs threaten to limit consumer spending, which has been sustaining the expansion.
Other reports this week may show manufacturing and services were little changed in April, suggesting the economy wasn’t picking up speed following the slowest pace of growth in four years.
“The economy is dealing with a case of the ‘blahs,”‘ said Jonathan Basile, an economist at Credit Suisse in New York, whose payroll forecast matched the survey median. “It feels a little sluggish, but you are still moving forward.”
The projected payroll increase would be the smallest since a 95,000 gain in January 2005.