The American job market demonstrated remarkable resilience in April, with employers adding 177,000 new positions, surpassing analysts' predictions of 135,000 jobs. The Labor Department reported Friday that the unemployment rate held steady at 4.2%.
The April hiring numbers, while slightly lower than March's revised 185,000 jobs, paint a picture of a robust labor market despite mounting economic pressures. Several sectors showed notable growth, with healthcare leading the way by adding 51,000 positions. Transportation and warehousing firms created 29,000 jobs, while restaurants and bars added 17,000 positions. The construction sector grew by 11,000 jobs, though manufacturing saw a small decline of 1,000 positions.
Worker earnings continued their upward trend, with average hourly wages rising 0.2% from March and showing a 3.8% increase compared to last year. The labor force expanded by 518,000 people in April, indicating growing workforce participation.
However, economists express concern about future job market stability. Lydia Boussour, senior economist at EY, predicts potential challenges ahead: "We expect steep tariff increases and market volatility will result in a more pronounced labor market downshift." She projects unemployment could reach 5% by 2025.
Despite these warnings, employers appear reluctant to reduce their workforce, particularly given the difficulties many faced rehiring after the COVID-19 layoffs of 2020. As Boston College economist Brian Bethune notes, "We are not seeing right now any really adverse effects on the employment market."
The Labor Department's revisions to previous months' data showed a reduction of 58,000 jobs from February and March figures, highlighting the ongoing adjustments in employment statistics.