US adds 115,000 jobs in April, beating expectations

The US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment increased by 115,000 in April, surpassing analyst projections of 55,000 jobs, while the unemployment rate remained unchanged at 4.3%. Job gains were concentrated in healthcare (37,000), transportation and warehousing, and retail trade, though the latter sector remains 105,000 jobs below its February 2025 peak. Federal government employment continued its decline, dropping 11.5%—or 348,000 jobs—from its October 2024 high, following policies attributed to President Donald Trump. However, economists expressed concern over the labor market’s fragility, noting that healthcare accounted for 81% of private-sector job growth over the past 24 months. Excluding healthcare, job growth was negative over the last 12 months, according to Oxford Economics. Dan North of Allianz Trade called the reliance on healthcare ‘a very risky way to run a railroad,’ warning of broader economic risks. The BLS also revised earlier data, revealing 16,000 fewer jobs in February and March than previously reported. Analysts from EY-Parthenon predicted a ‘largely frozen labor market’ for the rest of the year, citing supply shocks, energy cost uncertainty, and Middle East conflict fallout as factors discouraging hiring. Meanwhile, the Federal Reserve may use the data to justify maintaining current interest rates amid inflation fears driven by surging energy prices linked to the Iran war. The steady unemployment rate of 4.3% masks underlying weakness, with economists attributing it to a drop in labor supply rather than strong demand. Weak job growth and sectoral imbalances could signal deeper economic challenges, despite the headline numbers.