&w=3840&q=100)
‘Market refuses to buckle:' US adds 177,000 jobs in April, beating expectations
The US economy added 177,000 jobs in April, much more than what analysts anticipated. However, this was lower than the March figure of 185,000. The US Labor Department reported Friday (May 2) that the unemployment rate remained at a low 4.2 per cent.
While US President Donald Trump's tariff policies have ushered in an era of unpredictability, analysts believe the damage is not showing up in the labour market yet.
'The labour market refuses to buckle in the face of trade war uncertainty,' Christopher Rupkey, chief economist at fwdbonds, a financial markets research firm, was quoted as saying by CNBC.
STORY CONTINUES BELOW THIS AD
'Politicians can count their lucky stars that companies are holding on to their workers despite the storm clouds forming that could slow the economy further in the second half of the year,' he added.
More insights
Transportation and warehousing companies added 29,000 jobs last month, possibly because firms are rushing to stock up on imports before new tariffs drive prices higher.
Healthcare added nearly 51,000 jobs, while bars and restaurants added 17,000, and construction gained 11,000. However, factories lost 1,000 jobs.
Wages rise at moderate pace
Wages continued to rise at a moderate pace. Average hourly earnings went up by 0.2 per cent from March and are now 3.8 per cent higher than a year ago. That's close to the 3.5 per cent annual wage growth economists say is in line with the Federal Reserve's 2 per cent inflation goal.
The labor force grew by 5,18,000 people last month, and the participation rate—the percentage of people working or looking for work—edged up slightly.
Boston College economist Brian Bethune said before the report that there were no clear signs of weakness in the job market.
'We are not seeing right now any really adverse effects on the employment market.'
Still, many economists worry that a slowdown in economic growth caused by trade tensions could hurt hiring.
So far, however, companies seem hesitant to cut workers. Many still remember how difficult it was to rehire after the sharp but brief layoffs during the 2020 COVID-19 recession.
The overall strength in hiring and the low unemployment rate suggest the Federal Reserve will hold off on any rate cuts for now. Chairman Jerome Powell has said tariffs could raise prices, making the Fed cautious about inflation. Unless layoffs rise sharply, a rate cut appears unlikely at this time.
STORY CONTINUES BELOW THIS AD
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
US trade war hits gamers; Sony raises PS5 prices amid global tariff fallout
Donald Trump 's sweeping tariffs on imported goods are rippling across the global economy, affecting industries from electronics to automobiles, and now, the video game sector is feeling the impact. Sony Interactive Entertainment has announced a $50 price increase for all PlayStation 5 models sold in the United States, effective August 21, 2025, marking the first major US price hike for the console. Similar increases were implemented in Europe earlier this year, highlighting how trade policies are translating into higher costs for consumers worldwide. Under the new pricing, the standard PS5 will cost $549.99 (up from $499.99), the PS5 Digital Edition will rise to $499.99 (from $449.99), and the PS5 Pro will be priced at $749.99 (from $699.99). Accessories for the consoles will remain at current prices. The price hike comes amid ongoing economic pressures linked to tariffs imposed by the Trump administration, which began earlier this month on imported electronics, including Japanese-made products. Industry analysts estimate that these tariffs could cost Sony roughly $685 million annually. Sony cited the 'challenging economic environment' as the primary reason for the adjustment, reflecting a broader trend across the video game industry. Microsoft increased prices for its Xbox consoles and accessories in May 2025, while Nintendo raised prices for its Switch consoles in the US earlier this month, citing market conditions. Live Events Economists warn that if trade tensions continue, particularly with China, other consumer electronics may also see further price increases in the coming months. Gamers are advised to consider these developments when planning future hardware purchases.
NDTV
an hour ago
- NDTV
Trump Raises Pressure, Calls For Federal Reserve Governor To Resign
US President Donald Trump called Wednesday for Federal Reserve Governor Lisa Cook to step down, expanding pressure on the central bank after recent criticism of Federal Chair Jerome Powell for not lowering interest rates sooner. "Cook must resign, now!!!" Trump wrote on his Truth Social platform, while sharing a Bloomberg news report on how the Federal Housing Finance Agency's director has called for greater scrutiny of Cook over a pair of mortgages. FHFA director Bill Pulte -- a staunch ally of Trump's -- had reportedly written a letter to the US Attorney General calling for an investigation of Cook while suggesting that she might have committed a criminal offense. It was not immediately clear if such a probe will take place. The Trump administration has pursued allegations of mortgage fraud against high-profile Democrats who are seen as political adversaries of the president. The US leader's targeting of Cook, who sits on the central bank's rate-setting committee, comes after his repeated broadsides against Powell while the Fed kept the benchmark lending rate unchanged this year. Cook took office as a Fed governor in May 2022 and was reappointed to the board in September 2023. She was sworn in later that same month for a term ending in 2038. Cook has previously served on the Council of Economic Advisers under former president Barack Obama. In recent months, Trump has called Powell a "numbskull" and "moron" as the central bank held rates steady to monitor the effects of US tariffs on inflation. Trump had also previously suggested that what he said is an overly costly renovation of the Fed's headquarters could be a reason to oust Powell, before backing off the threat. Powell's term as Federal chair ends in May 2026.
NDTV
an hour ago
- NDTV
India Panel Cites US Tariffs As Growth Risk, Sees Mild Inflation
Mumbai: India's monetary policy committee members flagged evolving risks from global trade tensions and tariffs as a key drag on growth but said the economy remains resilient with the inflation outlook benign, minutes of the August meeting showed on Wednesday. The Reserve Bank of India held its key repo rate steady at 5.50% earlier this month, after cutting rates by 100 basis points so far in 2025. The six-member Monetary Policy Committee voted unanimously to retain a "neutral" stance, citing the need for flexibility amid domestic and global uncertainties. "Growth projected at 6.5% is resilient," RBI Governor Sanjay Malhotra wrote in the minutes, but added the projection was "certainly lower than what we can achieve." He warned that uncertainty in external demand, driven by tariffs and geopolitical tensions, remained a major drag on growth. India faces as much as 50% tariff on exports to the United States starting August 27 after US President Donald Trump imposed an additional 25% tariff earlier in the month citing New Delhi's continued imports of Russian oil. Malhotra said the moderation in food inflation since the June meeting was larger than expected, but cautioned that the uncertainties around tariffs were still evolving. He added that the neutral stance would provide the necessary flexibility to respond to changing conditions. India's retail inflation rate dropped to its lowest level in eight years in July, as falling food prices, especially vegetables and pulses, squeezed farmers' incomes. Deputy Governor Poonam Gupta said the moderation in inflation was not broad-based and was primarily driven by food prices falling. "Core inflation is likely to remain above 4% in the near to medium term, barring any major negative shock to input prices," she wrote. MPC member Ram Singh said the average CPI inflation outlook for 2025–26 had become "very benign," though core inflation was expected to stay above the target range. He flagged sustained growth in construction, trade and services, but warned of high uncertainty on both inflation and growth fronts. External member Nagesh Kumar said the case for stimulating private investments and urban demand remains strong while the benign inflation outlook also provides policy space. But considering trade policy uncertainties, it is better to wait and watch before looking at any policy decisions at the October meeting, he said. External member Saugata Bhattacharya said monetary policy has to address multiple, often conflicting, objectives and optimise the consequent trade-offs. He highlighted the trade-off between loan and deposit rates as one of the key considerations. The central bank has a 4% inflation target, with a tolerance band between 2% and 6%. India reports GDP growth data on Friday.
