Payrolls Rise 88,000, Unemployment Rate Up to 4.5%

Washington, DC, May 4, 2007–The economy added a weaker-than-expected 88,000 jobs in April and the jobless rate rose to 4.5 percent from 4.4 percent, which matched a five-year low, according to the Labor Department.

The 88,000 increase in employment followed a 177,000 gain in March that was smaller than previously estimated.

Economists had forecast an increase in payrolls of 100,000 as well as an increase in the unemployment rate to 4.5 percent.  

The April increase in payrolls was the lowest since November 2004.

Revisions for the previous two months decreased the payroll count by 26,000 jobs compared with the Labor Department’s previous estimates.

Workers’ average hourly earnings rose 4 cents, or 0.2 percent, after a 0.3 percent increase the previous month. Economists expected a 0.3 percent increase in hourly wages. Earnings were up 3.7 percent from April of last year.

The slow pace of job gains last month reflects reductions at retailers, construction companies and manufacturers. Retailers cut 26,000 jobs, while builders shed 11,000.

Manufacturers’ payrolls dropped by 19,000 last month. The service sector added 116,000 workers.