US jobs grow by more than expected in April despite tariff turmoil

Despite the turmoil stemming from changes to trade policy, hiring in the US remained solid last month. According to the Labor Department, employers added 177,000 jobs in April, while the unemployment rate held steady at 4.2%.

The unexpected gain in jobs was larger than many analysts had predicted, especially during a month marked by financial market chaos and rising economic concerns.

The US job market’s resilience in recent years has defied expectations, supporting consumer spending even as prices rose and interest rates increased.

The latest figures have provided some hope that the US economy can withstand the uncertainty caused by tariff policy changes without plunging into a severe downturn.

However, analysts remain cautious, noting that the full impact of President Donald Trump’s sweeping import taxes will take time to be fully realized.

While the job report was positive, revisions showed that fewer jobs were added in January and February than initially estimated.

Olu Sonola of Fitch Ratings emphasized the strong fundamentals of the US economy but highlighted the lingering uncertainty in the outlook.

The surveys conducted by the Labor Department were completed shortly after Trump’s announcement of new tariffs, which have pushed US import taxes to their highest level in over a century.

Many companies are proceeding cautiously due to the rapid policy changes, with hopes that Trump’s trade deals will yield positive results.

Job growth in April was driven by sectors such as healthcare, warehousing, and transportation, while employment declined in the federal government but increased at the local level.

Manufacturing and retail companies saw a decrease in payrolls, while average hourly pay rose by 3.8% over the past year.

Seema Shah of Principal Asset Management suggested that the strong job figures indicate that the US Federal Reserve may not need to cut interest rates to support the economy.

Despite potential economic weakening in the future, the US economy has a good chance of avoiding a recession if it can navigate the tariff challenges effectively.