The U.S. labor market continued to defy expectations in April, with employers surpassing economists’ forecasts and adding 115,000 jobs across the nation.
By the numbers
Economists predicted payroll gains of 65,000 in April, according to a consensus forecast from FactSet.
The unemployment rate, which has hovered above 4% since June 2024, held steady at 4.3%.
Health care and transportation and warehousing led job growth in April, adding 37,000 and 30,000 jobs, respectively. Federal employment fell by 9,000.
The report follows a strong March report, when employers added a revised 185,000 jobs, according to the Labor Department.
The Labor Department said Friday that it also revised February’s already weak reading down by 23,000, bringing the total number of jobs lost that month to 156,000.
What the experts say
Hiring has picked up while layoffs remain relatively subdued, with little evidence so far that the Iran war is affecting the labor market.
“The addition of 115,000 jobs in April continues to highlight the resilience of the U.S. labor market,” said Jerry Tempelman, vice president of economic and fixed income research at Mutual of America Capital Management, in an email. “In spite of higher gas prices, we’ve seen minimal disruptions to the U.S. economy due to the conflict in the Middle East. In fact, the equity markets continue to trade at or near new highs.”
But, Tempelman added, “this may change, as the impact of higher oil prices and other key commodities, such as fertilizer, drive up costs and may ultimately slow down economic growth.”
According to data this week from outplacement firm Challenger, Gray and Christmas, employers have cut around 300,000 jobs so far this year, about half the number from the same period a year ago.
In April, about one in four companies cited artificial intelligence as the reason for layoffs, a growing trend as businesses seek to speed up workflows and cut costs.