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U.S. Employers Added 177,000 Jobs in April as Hiring Holds Up The unemployment rate held at 4.2%.

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The U.S. labor market remained resilient in April, with employers adding 177,000 jobs, a solid showing despite ongoing economic uncertainty that’s caused many employers to put hiring plans on hold.

The unemployment rate held steady at 4.2 percent, near historic lows, according to a jobs report released Friday by the Labor Department. Economists had largely expected growth to cool, following the addition of 185,000 jobs in March, figures that were revised downward.

The labor market has been a pillar of strength for years, helping prop up the economy through a period of high inflation and elevated interest rates. Economists have been on high alert that surrounding weakness, including data this week showing the U.S. economy shrank in the first three months of 2025, could drag down the labor market. But so far, that slowdown has yet to materialize.



“Today’s report is a welcome surprise,” Ger Doyle, U.S. manager at ManpowerGroup, wrote in an email. “Overall, the labor market is not in crisis but at a crossroads.”

Uncertainty over the Trump administration’s tariff plans has led to noticeable shifts in consumer and business behavior. Americans are spending more cautiously, by cutting back on travel and dining out, while many companies are loading up on equipment but pausing hiring and expansion plans.

Gross domestic product, the broadest measure of the economy, contracted by 0.3 percent in the first quarter of the year, a sudden pullback after almost three years of steady growth. Economists attributed much of that drop to a mismatch in trade, as U.S. businesses stockpiled imports ahead of tariffs, as well as a large decline in federal government spending.

The question now is whether the labor market can withstand rising uncertainty across the economy. The Trump administration’s crackdown on immigration is also likely to ripple through the job market, though economists say it’s unclear exactly where things will land.

Already, there are signs of strain in the job market. The unemployment rate, while still low at 4.2 percent, has inched up for the past two months. Employers are posting fewer openings, and more Americans report being unemployed for longer. Last week, 241,000 Americans filed new applications for unemployment benefits, an increase of 18,000 from the week before.

Widespread funding cuts and layoffs by the U.S. DOGE Service (the Department of Government Efficiency), which began earlier this year, may also become more evident in April jobs data. Even though federal workers account for a small share of the total workforce, economists say recent layoffs and firings are likely to ripple into other industries across contracting companies and nonprofits.

“Employment tied to industries that receive bulk contracting dollars, such as health care, scientific research, education, transportation, and manufacturing, are most vulnerable,” Seema Shah, chief global strategist at Principal Asset Management, said in an email.

The chill from federal funding freezes has already been far-reaching. Brittany Frodge, a lecturer at Ohio State University, recently found out she’ll be out of a job starting May 15. Her position teaching Spanish will soon go to a graduate student.

“Everywhere I look, there’s a hiring freeze because there’s so much paranoia and uncertainty about the new administration,” she said. “There aren’t as many tenure-track positions, and there are severe limits on research.”

Frodge has applied to every opening she’s found that fits her qualifications, she said: a grand total of two, including one in Arkansas. For now, her husband still has a job at Ohio State, teaching in the philosophy department, but she worries about long-term stability.

“It’s a really difficult moment to get work,” she said.

The 29,000-job increase in transportation and warehousing is interesting. The sector has been accelerating in recent months, in a potential sign that employers have been rushing to move goods ahead of tariffs.

This jobs release probably won’t move the needle much on the Fed debate. A robust headline number continues to lean on key sectors for growth, with downward revisions to previous months. Yet we all know that the bigger picture is yet to play out as the tariffs impact prices and supply.

Trump’s post-job-release take is quite the opposite of the bond market’s. Investors see less likelihood that the Fed will resume rate cuts by the June meeting. Yesterday, interest-rate futures reflected a greater than 50-50 chance the Fed would cut in June. Right now it’s a little less than 50-50.

As the dust settles post-jobs, yields are heading higher. Long-dated 10-to-30-year yields are now up 5bps and at fresh session peaks. This cuts to the debate between investors who are mainly sticking with the 5-year and shunning the back end on inflationary and foreign demand angst. Also, the May refunding is the next event, with sales of 10- and 30-year bonds next week.

Ed Al-Hussainy at Columbia Threadneedle says that “there’s some tension in this reaction between investors who will look through this positive data as pre-tariff history versus those who will see signs of resilience and a risk-on signal.”
Trump has posted on the social media platform Truth Social that energy prices are down and employment is strong. He describes the economy as being in a ‘TRANSITION STAGE’ and ends with this kicker:
“NO INFLATION, THE FED SHOULD LOWER ITS RATE!!! DJT”

The robust headline number leans against commentary that the crackdown on immigration will lean against payroll growth. Still, this is an issue that may yet surface in the months ahead.

Although the length of the average work week remained steady at its lower-than-average level, the number of hours worked by factory workers making durable goods dropped to 40.4, in a potential sign of reduced activity. Surveys of manufacturing companies have weakened markedly since President Trump started announcing new tariffs.


 The April Jobs Report was big. And it's got a lot of people talking.


Here’s what’s happening in the U.S. labor market right now.



It’s a mix of resilience, caution, and big shifts — and we must pay attention.

▪️ 177,000 jobs added in April (way ahead of expectations).
▪️ Unemployment steady at 4.2%.
▪️ Strongest sectors: healthcare, transportation, finance.
▪️ Wage growth: +0.2% in April, +3.8% year-over-year.

That’s the surface-level story.

But dig deeper, and you’ll see a more complex picture.

▪️ GDP shrank 0.3% in Q1.
▪️ Wage growth is slowing, meaning companies are tightening their belts.
▪️ Tech and white-collar hiring remain soft.

So why are we still seeing strength?

Healthcare demand is booming, logistics industries are critical, and businesses are still investing in essential roles.

Even with economic uncertainty in the background.

However, wage growth cooling tells us companies are becoming more cautious.

We’re seeing a two-speed economy.

Essential industries are powering ahead.

Office-heavy sectors are slowing down.

So, what can we expect in the next few months?

Here’s my framework for what’s ahead:
▪️ The Fed likely stays put — no rate cuts just yet.
▪️ Healthcare and logistics keep hiring — they are the backbone of demand.
▪️ Tech, media, and white-collar focus on efficiency over expansion.

For leaders, this is the moment to:
▪️ Focus on retention
▪️ Invest in upskilling
▪️ Practice radical transparency

For candidates, the playbook is clear:
▪️ Stay proactive
▪️ Build adaptable skills
▪️ Network smart

 

 

 

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