In April the U.S. saw its biggest monthly jobs gain in 4 years, but the unemployment rate actually rose from 9.7% to 9.9%. How is this possible? Well, apparently the increasing number of job seekers caused the increased unemployment numbers. In other words, because an additional 805,000 job seekers - perhaps feeling better about their job prospects - resumed their search for work, this caused the unemployment numbers to climb.
Click here for Huffington Post article.
Does this data give mixed signals about the economicy recovery? Perhaps. But there is no doubt that the additional 290,000 jobs added last month is a strong sign that businesses are confident about their earnings prospects. And as history has shown, confidence can go a long way in helping the economic recovery.
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