- U.S. nonfarm payrolls rose by 177,000 in April, exceeding the Dow Jones estimate of 133,000 but trailing March’s revised 185,000, despite Trump’s tariffs impacting trade.
- The unemployment rate stayed steady at 4.2%, reflecting a resilient labor market amid economic uncertainties, as reported by the Bureau of Labor Statistics.
The U.S. labor market demonstrated resilience in April, navigating the turbulence of President Donald Trump’s trade policies with a solid gain of 177,000 nonfarm payrolls, as reported by the Bureau of Labor Statistics. This figure, while slightly below the revised 185,000 jobs added in March, surpassed the Dow Jones estimate of 133,000, signaling sustained employer confidence despite the shadow of a 10% blanket tariff on U.S. imports introduced at the month’s start. The unemployment rate remained steady at 4.2%, aligning with expectations and reflecting a labor market that, while not overheating, continues to absorb workers at a stable pace. A broader measure of unemployment, capturing discouraged workers and those in part-time roles for economic reasons, dipped to 7.8%, suggesting a slight easing of underemployment pressures. The labor force participation rate ticked up to 62.6%, indicating a modest increase in workforce engagement.
The household survey painted an even brighter picture, with 436,000 individuals reporting employment, a robust gain that underscores the labor market’s underlying strength. Sectoral performance was led by health care, which added 51,000 jobs, reinforcing its role as a cornerstone of job creation. Transportation and warehousing contributed 29,000 jobs, while financial activities and social assistance added 14,000 and 8,000, respectively. However, the federal government shed 9,000 jobs, part of a broader effort spearheaded by Elon Musk’s Department of Government Efficiency to streamline public sector payrolls. Since January, federal employment has contracted by 26,000, though the BLS notes that furloughed workers receiving severance are not classified as unemployed, softening the reported impact.
Wage growth, however, remained subdued. Average hourly earnings rose by 0.2% month-over-month, falling short of the 0.3% forecast, while the annual increase of 3.8% marked the slowest pace since July 2024 and undershot expectations by 0.1 percentage point. This tepid wage performance may reflect employer caution amid trade uncertainties, potentially easing inflationary pressures as the Federal Reserve prepares for its upcoming policy meeting. The central bank, currently in its pre-meeting quiet period, will likely scrutinize these figures for clues on balancing growth and price stability.
The broader economic context is shaped by Trump’s trade maneuvers. The 10% across-the-board tariff, initially paired with threats of “reciprocal” duties on numerous trading partners, rattled markets and raised fears of retaliatory measures. Yet, a 90-day pause on the reciprocal tariffs, announced mid-month, has paved the way for negotiations, with White House officials hinting at imminent deals with some nations. These developments likely tempered the tariffs’ immediate drag on hiring, allowing sectors like health care and transportation to sustain momentum.
Revisions to prior months’ data, however, cast a shadow. March’s job count was trimmed by 43,000, and February’s figure was revised down to 102,000, a 15,000 reduction. These adjustments suggest the labor market’s strength may have been overstated earlier in the year, though April’s performance indicates employers are adapting to the evolving policy landscape. As global trade talks progress and the Federal Reserve weighs its next steps, the labor market’s ability to maintain stability will remain a critical barometer of economic health.
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