Employers added 115,000 jobs in April, blowing past forecasts

The U.S. labor market defied expectations once again in April, with employers adding 115,000 jobs nationwide, surpassing economists’ forecasts. This positive news comes as a welcome surprise, as economists had predicted payroll gains of only 65,000 for the month. The unemployment rate, which has remained above 4% since June 2024, held steady at 4.3%.

In terms of job growth by sector, health care and transportation/warehousing companies led the way in April, adding 37,000 and 30,000 jobs, respectively. However, federal employment saw a decline of 9,000 jobs. This report follows a strong March report, which saw a revised addition of 185,000 jobs. The Labor Department also revised February’s numbers downward by 23,000, resulting in a total loss of 156,000 jobs for that month.

On average, employers added 48,000 jobs per month from February to April, slightly lower than the previous three months’ average of 61,000. Despite this slight dip, the pace of job growth is sufficient to maintain the nation’s unemployment rate at a stable level, according to Thomas Ryan, North America economist at Capital Economics.

Experts note that hiring has increased while layoffs have remained relatively low, with little evidence yet of the Iran war impacting the labor market. Companies have cited artificial intelligence as a reason for layoffs, reflecting a trend of businesses seeking to streamline workflows and reduce costs.

Looking ahead, Angelo Kourkafas, senior strategist at Edward Jones, believes that the Federal Reserve will likely hold off on interest rate cuts as they assess the impact of rising energy costs due to the Iran war. With inflation still running high, fueled by increased gasoline prices, the Fed has maintained its benchmark rate steady this year to prevent further inflationary pressures.

The latest employment report showing signs of improvement in the labor market is a positive development. However, experts caution that rising oil prices and other key commodity costs may pose challenges to economic growth in the future. As the situation continues to evolve, policymakers will need to carefully monitor and adapt to ensure a stable and sustainable recovery.

This article was edited by Aimee Picchi and originally appeared on CBS News.