U.S. employers added 177,000 jobs in April, the Labor Department reported on Friday. The unemployment rate was unchanged at 4.2 percent.
Both numbers, which demonstrate that the U.S. labor market remains in good condition, are based on surveys taken in the immediate wake of the Trump administration’s move in early April to institute the highest level of tariffs on imports since the 1930s.
The gain extended the streak of U.S. job growth to 52 months.
What they’re saying: “No real tangible signs of any impact from the trade war in hiring,” said Joseph Brusuelas, the chief economist at the consulting firm RSM. “It’s good that the economy generated momentum heading into a trade shock.”
Time will tell: The vast majority of data analysts say the eventual effect of President Trump’s high tariffs on the labor market will be fully appreciated only in the weeks and months to come. Still, the early impact is reverberating through financial markets, global freight patterns and corporate business plans.
Goods versus services: The U.S. economy is more oriented than ever around services, which constitute about 70 percent of U.S. commercial activity. Yet goods purchases still make up a major chunk of household spending, and more than 40 percent of U.S. manufacturers rely on imported parts or finished goods.
A sour mood: Consumer sentiment has plunged in the past few months. Key U.S. ports are reporting rapidly declining shipping volumes. And forecasters at major banks have dialed up the risk of recession and higher inflation this year.
The DOGE effect still lingers: Federal government employment declined by 9,000 in April and is down by 26,000 since January, likely the continued consequence of the administration’s mass firings and hiring freezes at federal agencies.
Keeping an eye on manufacturing: “This is one of those straightforward reports. Good enough and not too hot,” said Samuel Rines, macroeconomic strategist at Wisdom Tree, a financial firm. “And the decline in manufacturing employment was minimal — for now. That is the line item to watch as tariffs begin to flow through to the labor market.”
More context: Average hourly earnings growth for workers, which is up 3.8 percent over the past year, has kept up a solid pace overtaking inflation since mid-2023.