The U.S. labor market once again defied expectations in April, delivering stronger-than-anticipated job growth despite growing concerns about a potential slowdown, according to the latest report from the Bureau of Labor Statistics.
- The unemployment rate held steady at 4.2% as nonfarm payrolls increased by 177,000 last month, easily surpassing economists’ forecasts of a 130,000 gain.
- While hiring cooled modestly from March’s revised 184,000 figure, April still marked the second-highest monthly job creation total of 2025.
Breaking It Down: Health care continued to lead job gains, adding 51,000 positions in April. Transportation and warehousing contributed 29,000 new jobs, and financial activities added another 14,000.
- However, the federal government shed 9,000 jobs last month, offering a rare weak spot in an otherwise resilient report.
Revisions: One note of caution came from downward revisions to prior months’ data. February’s job growth was lowered by 15,000 to a total of 102,000, and March’s gain was trimmed by 43,000 to 185,000. Even so, the overall trend remains solid.
Wages: Wage growth remained stable. Average hourly earnings for all private nonfarm employees rose 0.2% in April to $36.06. Compared to a year earlier, wages were up 3.8%, unchanged from March’s annual pace.
- NOTE: Wages continue to outpace inflation which remains under 3.0%
What They’re Saying: Nick Timiraos of The Wall Street Journal observed that April’s stronger-than-expected employment report is likely to influence Federal Reserve policymakers not just at their upcoming May meeting but also in June. “Because April’s employment report offers very few indications of a broad-based decline in hiring,” he noted, “Fed officials can easily maintain their wait-and-see posture… including by saying little that would offer any sign the central bank is prepared to lower interest rates at its subsequent meeting in mid-June.”
Impact On Rates: A strong labor market means any hope of rate cut in May or June has been dashed.