Jobs report April 2025:
The latest report on job growth in the United States for the month of April has exceeded expectations, despite concerns over the impact of President Donald Trump’s tariffs on U.S. trading partners. According to the Bureau of Labor Statistics, nonfarm payrolls increased by 177,000, slightly below the revised figure of 185,000 for March but well above the estimated 133,000.
The unemployment rate remained stable at 4.2%, in line with expectations, indicating a relatively stable labor market. The survey of households showed a significant increase of 436,000 in the number of people reporting holding jobs in the month. The broader unemployment rate, which includes discouraged workers and part-time employees for economic reasons, decreased to 7.8%, while the labor force participation rate rose to 62.6%.
Following the release of the report, stock market futures and Treasury yields rose, indicating a positive reaction from investors. The strong job numbers suggest that the economy has shown resilience before the impact of tariffs. However, there are concerns about the potential impact of the tariffs in the coming months.
The healthcare sector continued to lead in job creation, adding 51,000 jobs, while other sectors such as transportation and warehousing, financial activities, and social assistance also posted gains. The federal government reported a loss of 9,000 jobs, mainly due to efforts to reduce payrolls in the public sector. Manufacturing saw a slight decline of 1,000 jobs.
Average hourly earnings rose by 0.2% for the month, below the forecasted 0.3%, with an annual rate of 3.8%, slightly lower than expected. Revisions to previous months’ job totals brought the figures lower than initially reported.
The report comes ahead of the Federal Reserve policy meeting next week, where officials are expected to hold the benchmark short-term borrowing rate steady. However, there are expectations of a rate cut in July, with concerns about potential inflation impacts from the tariffs.
President Trump has called on the Fed to lower interest rates, citing no inflation as a reason for the rate cut. The markets are closely watching the Fed’s actions and statements regarding the tariffs and their potential impact on the economy.
Overall, the job growth report for April indicates a strong labor market, but uncertainties remain due to the ongoing trade tensions and the potential impact of tariffs on the economy. Investors and policymakers will be closely monitoring the situation in the coming months to assess the true impact of these factors on the economy.
