The U.S. economy added only 220,000 jobs in April, below the recent trend (650k) and below expectations (900k). As well, the unemployment rate ticked higher to 6.1%. Revisions to previous months' jobs totals lowered the count by 78,000. Notable job gains in April were in leisure and hospitality, other services, and local government education. These were offset partially by employment declines in temporary help services and in couriers and messengers. The labor market continues to reflect the impact of the pandemic, as the shape and character of the workforce is changing as the economy recovers. The current number of jobs is approximately 8.5 million lower than the pre-COVID (February 2020) level. The labor force participation rate remains a low 61.7%, compared to the historical average of 65%. Last month, 18% of employed persons teleworked because of the pandemic. The Labor Department recently reported that another 498,000 people filed initial unemployment claims, down from more than 700,000 a month ago; the total of continuous claims was 3.7 million, down from 4.0 million a month ago. Though trending in the right direction, the data indicates that the employment environment is still under stress. We expect the unemployment rate will remain above 5.0% into 2022, and that the Fed therefore will keep interest rates low.

Ethan Allen Interiors Inc., based in Danbury, Connecticut, is a manufacturer and retailer of home furnishings. FY20 sales were $589.8 million. The company sells its products through a network of approximately 300 retail design centers. Products include beds, tables and other case goods, upholstered items such as sofas and recliners, and accessories such as clocks, window coverings and rugs. The company manufactures about 75% of its products in North America.

Stocks finished higher on Thursday in a volatile session as investors weighed a new round of 1Q earnings reports along with weekly employment data. The Labor Department reported that first-time jobless claims fell to 498,000, the first drop below 500,000 in the pandemic era and below the consensus forecast. However, continuing claims rose to 3.69 million from 3.653 million and topped the consensus estimate. The data came ahead of the government's April employment report on Friday morning. The Reuters consensus calls for the addition of 978,000 new payroll jobs after an increase of 916,000 in March. The Dow rose 0.93%, the S&P 0.82%, and the Nasdaq 0.37%. Crude oil fell 1% to $65 per barrel, while gold rose $31 to $1815 per ounce.

Ethan Allen Interiors Inc., based in Danbury, Connecticut, is a manufacturer and retailer of home furnishings. FY20 sales were $589.8 million. The company sells its products through a network of approximately 300 retail design centers. Products include beds, tables and other case goods, upholstered items such as sofas and recliners, and accessories such as clocks, window coverings and rugs. The company manufactures about 75% of its products in North America.