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US nonfarm payrolls expected to increase nearly a million in April

The US labor sector likely added nearly a million new jobs in April, according to a forecast for increase in non-farm payrolls by 978,000, from 916,000 in March.

Reopening of the economy amid massive financial support from the government and improved public health on rapid pace of vaccination, strongly boosted demand, prompting US employer to hire more workers.

Closely watched employment report will be the first to show the impact of the latest $1.9 trillion coronavirus pandemic rescue package, approved in March, with strong labor data in April to show that the economy accelerated further at the beginning of the second quarter, signaling that this year’s performance would be the best in nearly four decades.

The economists are optimistic as strong forecasts reflect increased economic activity which should lead to more hiring in coming months, as US unemployment is currently about 7.5 million below its peak in February 2020, when the economy recorded a loss of 20.6 million jobs, with unemployment rate expected to drop to 5.8% in April from 6.0% in March.

The US economy grew by 6.4% in the first quarter, marking the second fastest growth since Q2 of 2003, with consumers’ perception of the labor market being the strongest in over one year.

The acceleration of the economic recovery resulted in rising demand for workers in all sectors, with payroll gains expected to be led by leisure and hospitality industry, with solid gains also expected in manufacturing sector, despite a global supply problem, as well as in government employment.