April Jobs Beat Expectations

Key Takeaway's

• Total nonfarm payrolls rose by 115,000, beating expectations, with strongest gains in health care, transportation and warehousing, and retail trade.

• Federal government employment continued contracting, down another 9,000 jobs in April and nearly 350,000 below its October 2024 peak.

• Hires: Increased to 5.6 million, led by gains in transportation, warehousing, and professional services.

  
  

The April 2026 Employment Situation report from the Bureau of Labor Statistics showed payroll growth of 115,000 jobs with headline unemployment steady at 4.3%, but broader U-6 unemployment rose to 8.2%. The increase was driven by more workers forced into part-time employment and employers are demanding more flexible staffing arrangements.

Temporary-help employment increased by roughly 7,900 jobs. Historically, elevated U-6 underemployment leads to greater use of temp labor (as I stated last August) as employers stay flexible before committing to permanent hiring. The April data suggests businesses are becoming more cautious while still maintaining near-term staffing needs.

For a deeper dive….

•       A more encompassing measure of unemployment (U6) that includes discouraged workers and those holding part-time jobs for economic reasons rose to 8.2%.

•       Prime age labor force participation rate (ages 25-54) remained 83.8%.

•       The overall labor force participation is 61.8%.  This is still 1.4% below the level of February 2020. 

·      In April, average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents, or 0.2 percent, to $37.41. Over the year, average hourly earnings have increased by 3.6 percent. In April, average hourly earnings of private-sector production and nonsupervisory employees rose by 11 cents, or 0.3 percent, to $32.23.

·      The average workweek for all employees on private nonfarm payrolls edged up by 0.1 hour to 34.3 hours in April. In manufacturing, the average workweek edged up by 0.1 hour to 40.4 hours, and overtime was unchanged at 3.0 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls remained at 33.8 hours.

•       APD reported that 109,000 jobs were added in April.

JOB OPENINGS AND LABOR TURNOVER – MARCH 2026

The number of job openings was unchanged at 6.9 million in March, the U.S. Bureau of Labor Statistics reported today. Over the month, hires increased to 5.6 million while total separations changed little at 5.4 million. Within separations, both quits (3.2 million) and layoffs and discharges (1.9 million) were little changed. 

This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, and by establishment size class. Job openings include all positions that are open on the last business day of the month. Hires and separations include all changes to the payroll during the entire month.

Job Openings

The number of job openings was unchanged at 6.9 million in March. The job openings rate, at 4.1 percent, changed little over the month. The number of job openings decreased in professional and business services (-318,000) but increased in finance and insurance (+98,000).

Hires

The number of hires increased to 5.6 million (+655,000) and the rate increased to 3.5 percent in March, more than offsetting decreases in those measures the previous month. The number of hires increased in transportation, warehousing, and utilities (+108,000), and edged up in professional and business services

(+165,000) and in accommodation and food services (+124,000). Hires decreased in federal government (-7,000).

Separations

Total separations include quits, layoffs and discharges, and other separations. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer. Other separations include separations due to retirement, death, disability, and transfers to other locations of the same firm.

In March, the number and rate of total separations were little changed at 5.4 million and 3.4 percent, respectively. Total separations were little changed in all industries in March.

In March, the number and rate of quits were little changed at 3.2 million and 2.0 percent, respectively.

Quits decreased over the year by 285,000. Over the month, the number of quits increased in real estate and rental and leasing (+19,000).

The number and rate of layoffs and discharges were little changed at 1.9 million and 1.2 percent, respectively, in March. Layoffs and discharges increased over the year by 272,000. Layoffs and discharges were little changed in all industries in March. The number of other separations increased to 339,000 (+76,000) in March.

Establishment Size Class

In March, for establishments with 1 to 9 employees, job openings, hires, and separations rates showed little or no change. For establishments with 5,000 or more employees, the job openings, hires, and quits rates showed little change, while the layoffs and discharges and total separations rates increased.      

The Job Openings and Labor Turnover Survey estimates for April 2026 are scheduled to be

released on Tuesday, June 2, 2026, at 10:00 a.m.