BUFFALO (WBEN) - Employers added just 266,000 jobs in April, sharply lower than in March and far fewer than economists had originally projected. Restaurants, hotels, factories and construction companies struggled to find enough workers to catch up with a rapidly strengthening economic rebound.
Many, including Congressman Chris Jacobs, are pointing to enhanced unemployment benefits as the prime reason for the disappointing April jobs report that was released last week.
"Today's jobs report shows what we've known for months – the President's policies have disincentivized work and slowed our recovery from the pandemic," said Jacobs via a statement.
However, Ed Hutton, who serves as the director of the Niagara University Financial Services Laboratory, says it's not that simple.
"I think the reasons for that job number are a lot more complex than the $300 in extra unemployment benefits," he said.
Hutton pointed to a change in economic structure and the types of jobs people are looking for, noting that potential employees are now starting to look for jobs that have flexible scheduling, such as driving for Uber or Lyft. He added that employers will have to start paying more for employees.
"The average, if you look at someone who's getting enhanced unemployment benefits, comes to about $15 an hour, and yet, there are still some employers who think that they'll be able to hire workers at something close to minimum wage," Hutton continued.
Treasury Secretary Janet Yellen said Friday that the April jobs report underscored the long-haul climb back to recovery, and she added that the increase in jobs still represents continued progress from the worst of the COVID-19 pandemic.
Yellen also providing another reason for the slow-down, saying one of the factors keeping Americans out of the job market are parents who are still trying to manage schedules with kids not in school full-time.
"Care-giving responsibilities in absence of childcare are still important reasons why people are unable to return to work," said Yellen. "Concern about the pandemic and the health consequences I think remains a factor for many."
Despite the disappointing figures, Hutton isn't ready to panic.
"If you put aside the lack of hiring this month, and I think it's got to do with some timing issues, I think that the economy is really poised for a pretty sharp snap-back right now."
