The struggle to find workers to fill open positions continued as companies added far fewer jobs than expected in April.
Private payrolls increased by just 247,000 for the month. That was a big decline from the previous month, which saw an upwardly revised gain of 479,000.
The drop in small business hiring was the main reason for the disappointment. 96,000 workers were lost in the month in those with less than 20 employees.
In April, the labor market recovery showed signs of slowing as the economy approaches full employment.
Some of the decline was compensated for by big business with 500 or more workers.
The leisure and hospitality businesses created the most jobs. Education and health services contributed 48,000 to the total.
Information services lost 2,000 workers.
Services-related industries made up 202,000 of the total while goods producers added 46,000 and construction grew by 16,000. The totals are rounded.
The Bureau of Labor Statistics will release the nonfarm payrolls count on Friday.
The report is expected to show 400,000 growth and a decline in the unemployment rate. The pre-pandemic level was the lowest since 1969 if that forecast is correct. In March, payrolls increased by 431,000.
There was a gap between open positions and available workers in March. That has caused wages to go up, but they have not kept up with inflation, which is at its fastest pace in more than 40 years.
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