In April, hiring in the US slowed with the addition of 177,000 jobs amid Donald Trump’s trade strategy impacting the economic outlook. Despite the administration’s focus on tariffs to boost the economy, employers maintained a steady pace of job creation across various sectors. The Bureau of Labor Statistics reported a decrease from March’s job numbers but exceeded economists’ expectations. The unemployment rate remained at 4.2%.
While April’s hiring surpassed predictions, the BLS revised down job gains for February and March. Notably, healthcare and transportation industries saw significant hiring increases, whereas federal government employment decreased by 9,000 due to ongoing efficiency measures. Trump’s tariff announcement occurred two weeks before the April jobs survey, reflecting a transitional phase in economic policies.
The job market data comes amidst concerns over a 0.3% GDP decline in the first quarter, raising recession fears. Trump attributed the slowdown to imports surge, advocating for interest rate cuts, while economists anticipate Fed inaction. Nancy Vanden Houten from Oxford Economics noted mixed details in the employment report but suggested the Fed would monitor tariff impacts on inflation before making decisions.
The ADP National Employment report highlighted a private sector job growth of 62,000 in April, marking a low since July 2024. The interplay between trade policies, job market dynamics, and GDP trends underscores the complexity of current economic challenges in the US.
