U.S. economy posts second straight month of strong job gains

The U.S. economy added 115,000 jobs in April, surpassing forecasts of 62,000 and following a revised 185,000 gain in March, according to the Labor Department’s Bureau of Labor Statistics. The unemployment rate held steady at 4.3%, though part-time employment for economic reasons rose to the highest level in 14 months, and household employment declined for a fourth consecutive month. Economists noted financial pressures from inflation and rising prices could weaken labor conditions, while the three-month moving average of payrolls fell to 48,000, down from 72,000 in April 2023. Healthcare led job gains with 37,000 new roles, primarily in nursing and home healthcare, while transportation and warehousing added 30,000 positions. Retail payrolls increased by 22,000, though employment in transportation remains down 105,000 since its February 2025 peak. The Federal Reserve kept interest rates unchanged at 3.50%-3.75%, citing inflation risks, while financial markets adjusted bets on rate cuts amid the U.S.-Israeli conflict with Iran, which has driven up gasoline and commodity prices. Economists cautioned that labor demand and supply remain imbalanced, with uncertainty from past trade policies and immigration crackdowns contributing to volatility. The U.S. Court of International Trade ruled that recent tariff replacements were unjustified, though effects of the Iran war on hiring remain unclear. Stocks on Wall Street reached record highs, with the S&P 500 and Nasdaq gaining, while the dollar weakened against a basket of currencies and Treasury yields declined. The data suggests payrolls are stabilizing after mid-2025 fluctuations, though underlying pressures persist. Analysts at BMO Capital Markets warned the labor market could weaken if inflation erodes household purchasing power, leaving the Fed unlikely to cut rates soon. The report underscores a mixed but cautiously optimistic outlook for employment, with sectors like healthcare and transportation showing resilience amid broader economic challenges.