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Epoch Times
02-05-2025
- Business
- Epoch Times
Key Takeaways From the April Jobs Report
Employment growth beat market estimates in April, even as businesses and consumers worry about President Donald Trump's tariff plans impacting the U.S. economy. The unemployment rate was unchanged for the second consecutive month at 4.2 percent. A deeper dive into the April jobs report will reveal notable trends forming in the labor market. Here are some key takeaways from the latest Bureau of Labor Statistics data. American Versus Foreign Workers Over the last several years, the growth in the gap between employed U.S. and foreign-born workers has widened significantly. Between October 2019 and March 2025, the Related Stories 5/2/2025 5/1/2025 According to the Department of Labor, statistics regarding foreign-born workers include both legal and illegal immigrants. The divergence More Join the Labor Market New employment data show that many individuals joined or returned to the labor force in April. The In addition, the labor force participation rate ticked up to 62.6 percent from 62.5 percent in the previous month. The employment-to-population ratio also People not in the labor force and resting on the sidelines declined by 343,000 to a three-month low. With a slowdown in immigration volumes, this year's pace of employment expansion 'is likely enough to keep up with new jobseekers entering into the workforce,' Bill Adams, the chief economist for Comerica Bank, said in a note emailed to The Epoch Times. 'April's solid jobs report allays some fears of an immediate drag from tariff uncertainty,' Adams said. Government Payrolls Tumbling In the aftermath of the COVID-19 pandemic, government job creation accelerated and accounted for a large share of U.S. employment growth. Between January 2021 and April 2025, the number of employed individuals working for the government soared by more than The Trump administration, through workforce downsizing and cost-cutting actions recommended by the Department of Government Efficiency (DOGE), is attempting to reverse this trend at the federal level. Last month, federal headcount The decline in federal employment could be higher than reports suggest. 'Employees on paid leave or receiving ongoing severance pay are counted as employed in the establishment survey,' the Bureau of Labor Statistics said in the non-farm payrolls report. A USAID federal worker with her personal belongings leaves the USAID office in Washington on Feb. 27, 2025. Madalina Vasiliu/The Epoch Times This week, global outplacement firm Challenger, Gray and Christmas In the first four months of 2025, 'DOGE Actions' led to 283,172 announced layoffs, and the 'DOGE Downstream Impact' contributed to reduction of nearly 7,000 jobs in the education and nonprofit sectors. Andrew Challenger, the organization's senior vice president and workplace expert, noted in last month's report that March 'would have otherwise been a fairly quiet month for layoffs.' Out of Work Despite an overall solid U.S. labor market, various cracks have been spotted in the employment data. The number of individuals out of work for 27 weeks or more has steadily risen over the past year. In April, this measure Permanent job losers—the number of individuals who have been terminated and do not anticipate being recalled— In addition, the However, the U-6 unemployment rate Fed Policy Expectation Changes Investors no longer expect the Federal Reserve to restart its easing cycle in June. According to the 'With the US labor market conditions remaining intact, the Fed can remain a spectator on the sidelines with respect to policy changes as the fallout from [Trump's] higher tariff regime and shifting trading policy appears to be lagging,' said Charlie Ripley, the senior investment strategist for Allianz Investment Management, in a note emailed to The Epoch Times. This will likely frustrate the president, as he again urged Fed Chair Jerome Powell to lower rates. 'Just like I said, and we're only in a transition stage, just getting started!' Trump said in a Truth Social 'Consumers have been waiting for years to see pricing come down. No inflation, the Fed should lower its rate!' Powell and his colleagues have conveyed to the public that they want to be patient before taking policy action, citing the economy's strength and the need to wait for greater clarity from the administration's changes to fiscal, immigration, regulatory, and trade policy. What's Next U.S. stocks cheered the April jobs report, which indicated that the Trump administration's tariff plans have yet to adversely impact the labor market. Despite the continued uncertainty surrounding global trade, tariff stress was not found in the jobs arena as employers were still adding to their payrolls. Jamie Cox, the managing partner for Harris Financial Group, says this is exactly what you want to see if you are engaged in trade endeavors. 'If you are going to embark on a trade war and your economy is consumption based, this is the leverage you want,' Cox said in a note to The Epoch Times. Last month, Trump unveiled his sweeping tariff plans, which included a universal baseline 10 percent tariff on nearly all U.S. trading partners and higher reciprocal tariffs. Days later, the president authorized a 90-day pause to allow for trade negotiations. The White House has adjusted the various tariff regimes. According to Jeffrey Roach, the chief economist for LPL Financial, if the president softens his tariff stance and the labor market holds steady, 'the economy could skirt a deep recession,' he told The Epoch Times. Labor Secretary Lori Chavez-DeRemer thinks the better-than-expected April jobs report is proof that the United States is entering 'the golden age.' 'With President Trump at the helm, I'm telling you, he mentioned to the American people over and over again that the golden age was coming. I will tell you, the golden age is here,' Chavez-DeRmer said in an
Yahoo
01-05-2025
- Business
- Yahoo
Almost half of layoffs this year driven by DOGE: Report
Nearly half of all layoffs so far in 2025 have been driven by cuts related to the Department of Government Efficiency's (DOGE) efforts to slash government funding and reduce the size of the federal workforce, according to a new report from outplacement firm Challenger, Gray and Christmas. The report shows that 'DOGE Actions' led to 283,172 job cuts in the first four months of 2025, and 'DOGE Downstream Impact' was cited as the reason for another 6,945 job losses, which the report indicates largely come from non-profits and education organizations. Together, that accounts for 48 percent of all job cuts announced so far this year. The vast majority of job cuts related to 'DOGE Actions' occurred in March, which saw 216,670 positions cut. Government job cuts last month also accounted for the vast majority of layoffs across all sectors, which totaled 275,240 in March. In April, job cuts attributed to DOGE plummeted, with just 2,919 announced cuts attributed to the government cost-cutting initiative spearheaded by tech billionaire Elon Musk. But April still saw a high number of job cuts — 105,441 — the highest level since April 2020, which was the highest month ever recorded by the outplacement firm, which began reporting on job cuts in 1989. Reasons given for April cuts include 'Market/Economic Conditions' and tariffs and restructuring. 'Though the Government cuts are front and center, we saw job cuts across sectors last month. Generally, companies are citing the economy and new technology,' said Andrew Challenger, the firm's senior vice president. 'Employers are slow to hire and limiting hiring plans as they wait and see what will happen with trade, supply chain, and consumer spending.' Gross domestic product shrank during the first quarter of 2025 as a surge of imports ahead of President Trump's tariffs, which he announced in March and later delayed for 90 days, hit economic growth calculations. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
01-05-2025
- Business
- The Hill
Almost half of layoffs this year driven by DOGE: Report
Nearly half of all layoffs so far in 2025 have been driven by cuts related to the Department of Government Efficiency's (DOGE) efforts to slash government funding and reduce the size of the federal workforce, according to a new report from outplacement firm Challenger, Gray and Christmas. The report shows that 'DOGE Actions' led to 283,172 job cuts in the first four months of 2025, and 'DOGE Downstream Impact' was cited as the reason for another 6,945 job losses, which the report indicates largely come from non-profits and education organizations. Together, that accounts for 48 percent of all job cuts announced so far this year. The vast majority of job cuts related to 'DOGE Actions' occurred in March, which saw 216,670 positions cut. Government job cuts last month also accounted for the vast majority of layoffs across all sectors, which totaled 275,240 in March. In April, job cuts attributed to DOGE plummeted, with just 2,919 announced cuts attributed to the government cost-cutting initiative spearheaded by tech billionaire Elon Musk. But April still saw a high number of job cuts — 105,441 — the highest level since April 2020, which was the highest month ever recorded by the outplacement firm, which began reporting on job cuts in 1989. Reasons given for April cuts include 'Market/Economic Conditions' and tariffs and restructuring. 'Though the Government cuts are front and center, we saw job cuts across sectors last month. Generally, companies are citing the economy and new technology,' said Andrew Challenger, the firm's senior vice president. 'Employers are slow to hire and limiting hiring plans as they wait and see what will happen with trade, supply chain, and consumer spending.' Gross domestic product shrank during the first quarter of 2025 as a surge of imports ahead of President Trump's tariffs, which he announced in March and later delayed for 90-days, hit economic growth calculations.
