May 21 (Bloomberg) -- Payrolls increased in 38 states in April, led by Ohio, Pennsylvania and New York, indicating the recovery in the labor market is becoming more broad-based.
Employers in Ohio boosted staff by 37,300 workers last month, the biggest jump in 22 years, the Labor Department said today in Washington. Those in Pennsylvania added 34,000 workers, and employment in New York climbed by 32,700.
The number of states showing payroll gains increased from 33 in March. Nationally, the U.S. has added jobs five of the past six months and payrolls increased by the most in four years in April, according to Labor Department data released May 7.
“The labor market is starting to show more sustained gains in jobs,” Jonathan Basile, an economist at Credit Suisse in New York, said before the report. “The bottom in the jobs picture has been reached.”
Today’s report also showed unemployment decreased in 34 states in April and rose in six, indicating the unexpected jump in U.S. joblessness last month was not widespread. South Carolina showed the biggest decrease in unemployment, with the rate falling to 11.6 percent from 12.2 percent in March. Nevada had the biggest increase as unemployment climbed to 13.7 percent, a record for the state in data going back to 1976, from 13.4 percent.
Nationally, unemployment jumped to 9.9 percent in April, from 9.7 percent a month earlier, as jobseekers reentered the labor market in hopes of finding work as the economy improved. The jobless rate reached a 26-year high of 10.1 percent in October.
Jobless in Michigan
Michigan’s unemployment rate remained the highest in the nation in April at 14 percent, today’s report showed. It was followed by Nevada and California at 12.6 percent.
Employment gains in Ohio and Pennsylvania spanned many industries as companies in manufacturing, construction, tourism and professional services, such as engineering and accounting, all increased staff.
The jobless rate in New York decreased to 8.4 percent, the lowest level since May 2009, while unemployment in New York City fell to 9.8 percent from 10 percent in March, according to state labor department figures released yesterday. Excluding government hiring, the state added 31,500 jobs in April.
Unemployment in New Jersey was unchanged at 9.8 percent and payrolls grew by 10,500, the most since January 2008, the state’s labor department said on May 19. Connecticut’s unemployment rate decreased to 9 percent from 9.2 percent.
Separate Surveys
State and local employment data are derived independently from the national statistics, which are typically released on the first Friday of every month. The state figures are subject to larger sampling errors because they come from smaller surveys, making the national figures more reliable, according to the government’s Bureau of Labor Statistics.
Today’s report showed 16 states had unemployment of 10 percent or higher, compared with 15 in March. Indiana reached the 10 percent mark last month for the first time since September.
States are facing revenue shortfalls as high unemployment and sluggish consumer spending reduce tax collections. The U.S. Internal Revenue Service collected 18 percent less in non- withholding income taxes in April than a year earlier, the Rockefeller Institute of Government said May 4. State tax collections have declined for five straight quarters, according to the group.
The budget shortfalls are forcing municipalities to make their own workforce reductions. Los Angeles may cut its staff by as much as 5 percent under a city budget passed May 17.
