U.S. Loses 20,000 Jobs in April; Unemployment at 5%

The U.S. lost fewer jobs than forecast in April, and the unemployment rate dropped, signaling that the economic slowdown may be milder than the 2001 recession.

Payrolls shrank by 20,000 workers, following a revised 81,000 drop in March that was larger than previously estimated, the Labor Department said today in Washington. The jobless rate fell to 5 percent, from 5.1 percent in March.

``We are in a recession, this report doesn't change that,'' said Ellen Zentner, economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, who had forecast a payrolls cut of 25,000. ``What it does is support the idea that the downturn will be mild. Consumer spending isn't going to tank.''

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