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‘Market refuses to buckle:' US adds 177,000 jobs in April, beating expectations
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 read more
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.
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'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.
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