U.S. Adds 177,000 Jobs in April; Unemployment Holds Steady at 4.2%

The U.S. labor market demonstrated continued resilience in April, adding 177,000 jobs and keeping the unemployment rate unchanged at 4.2%, according to the latest data from the Bureau of Labor Statistics. This job growth exceeded economists’ expectations, who had forecast around 133,000 to 138,000 new positions, despite mounting concerns over the economic impact of President Donald Trump’s sweeping tariffs and ongoing policy uncertainty.

Job Gains Outpace Forecasts Despite Headwinds

April’s job creation, while slightly below the revised 185,000 jobs added in March, signaled a robust labor market even as the economy faces headwinds from aggressive trade policies and federal government cuts. The household survey, which measures employment differently from the payroll survey, showed an even stronger gain, with 436,000 more people reporting employment during the month.

Key sectors driving job growth included:

• Health care: +51,000 jobs
• Transportation and warehousing: +29,000 jobs, as companies rushed to import goods ahead of tariff deadlines
• Leisure and hospitality: +24,000 jobs
• Professional and business services: +17,000 jobs
• Financial activities: +14,000 jobs

However, manufacturing and retail both saw declines, losing 1,000 and 1,800 jobs respectively, as uncertainty over tariffs and higher costs weighed on these industries.

Wages and Participation

Average hourly earnings rose by 6 cents to $36.06, marking a 3.8% increase over the past year, which aligns with the Federal Reserve’s inflation target. The labor force participation rate edged up to 62.6%, reflecting a slight increase in Americans either working or seeking work.

Broader Measures and Revisions

A broader measure of unemployment, which includes discouraged workers and those working part-time for economic reasons, fell to 7.8%. Meanwhile, revisions to February and March payrolls subtracted a combined 58,000 jobs from previous estimates, suggesting some moderation in earlier job gains.

Economic Outlook: Resilient, but Risks Loom

Economists note that while the job market remains strong, the outlook is clouded by policy risks. President Trump’s “Liberation Day” tariffs-raising duties on a wide range of imports, including a 145% tariff on Chinese goods-have injected volatility into financial markets and could dampen future hiring if trade tensions persist. Federal government employment declined by 9,000 jobs last month, reflecting layoffs and budget cuts.

Despite these risks, the labor market’s performance in April provided some relief to investors, with stock futures rising after the report’s release. The Federal Reserve is now less likely to lower interest rates in the near term, as the jobs data eased fears of an imminent downturn.

“Job growth in April exceeded expectations, even amidst concerns regarding the effects of President Donald Trump’s sweeping tariffs on U.S. trading partners,” CNBC reported.

While experts caution that the full impact of tariffs and policy changes may not be felt for several months, April’s job report underscores the U.S. economy’s capacity to generate jobs and maintain low unemployment in the face of uncertainty.

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