The U.S. economy flexed its muscle in April, churning out 177,000 new jobs despite fears that trade tariffs might slam the brakes on growth. The numbers, dropped on May 2 by the Bureau of Labor Statistics, blew past Wall Street’s cautious bets of 130,000. It’s a gritty comeback story for a labor market that’s been dodging punches from global trade tensions and policy shifts.
April’s haul, while a shade below March’s revised 185,000, signals employers are still hiring at a steady clip. The unemployment rate held firm at 4.2%, unmoved from last month and right in line with forecasts. That’s no small feat when blanket tariffs, rolled out under President Donald Trump’s latest trade push, had economists whispering about a slowdown. Instead, the job engine kept humming.
Private sector payrolls led the charge, adding 167,000 jobs. Healthcare and professional services were the heavy hitters, with hospitals and clinics staffing up to meet demand and white-collar firms snapping up talent. Manufacturing, though, stayed sluggish—tariffs are biting hard there, keeping factory floors quieter than expected. Construction and retail also chipped in, but their gains were modest, like a team playing it safe in the fourth quarter.
Wages, meanwhile, didn’t exactly set the world on fire. Average hourly earnings crept up 3.8% from a year ago, matching March but falling short of the 3.9% analysts had hoped for. Month-over-month, paychecks ticked up a meager 0.2%, a slowdown from the 0.3% bump workers saw in March. For folks counting on fatter checks to offset rising costs, it’s a bit of a gut punch.
The labor force participation rate, a key gauge of how many people are working or hunting for jobs, sat steady at 62.7%. That’s a sign the workforce isn’t shrinking, but it’s not exactly bursting with new blood either. Some industries, like tech, are still cooling off after last year’s layoffs, while others are scrambling to fill gaps left by retirements and quits.
April’s report, pulled straight from the government’s number-crunchers, paints a picture of an economy that’s tougher than it looks. It’s not sprinting, but it’s not stumbling either. The data, collected through mid-April surveys of businesses and households, shows a labor market shrugging off trade jitters—for now.
Nonfarm payrolls: 177,000. Private payrolls: 167,000. Unemployment rate: 4.2%. Average hourly earnings, year-over-year: 3.8%. Labor force participation: 62.7%.