U.S. Adds 177,000 Jobs in April, Unemployment Rate Stable at 4.2%

The U.S. job market demonstrated resilience in April, adding more jobs than anticipated. According to data released by the U.S. Bureau of Labor Statistics, nonfarm payrolls increased by 177,000 after downward revisions to the previous two months' data. This figure surpassed analysts' forecasts, indicating that the labor market remains robust despite various economic challenges.

The unemployment rate held steady at 4.2%, suggesting that the job market is maintaining its stability. The report highlights that while there is some cooling in the labor market, businesses have not significantly altered their hiring plans due to uncertainties from tariffs and financial market turbulence. Most economists anticipate that the impact of punitive tariffs will become more apparent in the coming months.

Job growth in April was widespread, with notable gains in the healthcare, transportation, and warehousing sectors. However, manufacturing employment saw a decline, marking the largest contraction in the sector since 2020. Federal government employment also decreased for the third consecutive month. The labor force participation rate rose to 62.6% in April, while the unemployment rate for prime-age workers (aged 25 to 54) increased to its highest level in seven months.

Economists widely expect that as economic uncertainty continues, expansion plans may be halted, leading to an increase in layoffs in the coming months. Despite these challenges, the April job report indicates that the U.S. job market remains relatively strong, with broad-based employment gains across various sectors.