The US labor market added 115,000 jobs in April, according to the Bureau of Labor Statistics. The unemployment rate remained steady at 4.3 percent. These figures, released today, indicate a moderation in job growth compared to previous months, even as the unemployment rate holds steady. Economists had projected approximately 55,000 new jobs and an unemployment rate of 4.3%.
Job gains were concentrated in specific sectors, including healthcare, transportation and warehousing, and retail trade. The healthcare sector added 37,000 jobs. Transportation and warehousing also saw significant increases. Meanwhile, federal government employment continued its decline, shedding 9,000 jobs in April. Since October 2024, federal government employment has decreased by 348,000, or 11.5 percent.
Average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents, or 0.2 percent, to $37.41 in April. Over the year, average hourly earnings have increased by 3.6 percent. The labor force participation rate, at 61.8 percent, and the employment-population ratio, at 59.1 percent, showed little change in April.
The April jobs report arrives amidst economic uncertainty, including the ongoing US-Israel war with Iran. First-quarter GDP declined by 0.3 percent, marking the first contraction in a decade. Concerns about rising prices and potential stagflation continue to loom. Some analysts suggest that employers are making deliberate workforce decisions amid these uncertainties, focusing on employee retention and engagement.
