The U.S. economy added 177,000 new jobs in April, surpassing economists’ expectations despite mounting concerns over tariffs and recession risks.
The data, released Friday by the Bureau of Labor Statistics, reflects continued labor market resilience even as other indicators show signs of strain.
The strong labor report landed just days before the Federal Reserve is set to decide on interest rates. Market sentiment reacted positively to the news, with stock futures climbing shortly after the report’s release.
Jobs Data at a Glance
Here’s what the April jobs report revealed:
- New jobs added: 177,000 (forecast was 138,000)
- Unemployment rate: Held steady at 4.2%, as expected
- Labor force participation rate: Increased from 62.5% to 62.6%
- Employment-to-population ratio: Rose from 59.9% to 60%
- March revision: Lowered from 228,000 to 185,000
- February revision: Lowered from 117,000 to 102,000
- Net revisions: 58,000 fewer jobs than previously reported
- Wage growth: Average hourly earnings rose 3.8% year-over-year to $36.06
Sector Performance: Healthcare Leads the Way
Healthcare once again emerged as the key driver of job growth:
- Healthcare: +50,600 jobs
- Transportation and warehousing: +29,000 jobs
- Retail trade: -1,800 jobs
- Manufacturing: -1,000 jobs (less than the expected 5,000 loss)
- Federal employment: -9,000 jobs
Daniel Zhao, lead economist at Glassdoor, noted that “the slower acyclic sectors like healthcare and government jobs grow, the less buffer there is for the job market to avoid a recession when those more cyclical sectors start to experience economic headwinds.”
