The US labour market delivered stronger-than-expected job growth in April, signalling continued resilience despite mounting concerns over trade tensions, artificial intelligence-driven job cuts and rising energy costs.
Data released by the Bureau of Labor Statistics on Friday showed nonfarm payrolls increased by a seasonally adjusted 115,000 jobs last month, exceeding economists’ expectations for a gain of 55,000.
However, the figure marked a slowdown from the revised 185,000 jobs added in March.
The unemployment rate remained unchanged at 4.3%, suggesting the labour market continues to hold steady even as hiring moderates.
Economists said limited labour force growth has reduced the number of jobs needed each month to maintain stable unemployment levels.
Wage growth cools
Average hourly earnings rose 0.2% during the month, below expectations for a 0.3% increase.
On an annual basis, wages climbed 3.6%, also lower than the anticipated 3.8%.
Financial markets reacted positively to the report, with stock futures maintaining gains while Treasury yields moved lower following the release of the data.
Healthcare once again emerged as the strongest source of job creation, adding 37,000 positions during the month.
Transportation and warehousing added 30,000 jobs, while retail employment increased by 22,000. Social assistance payrolls also rose by 17,000.
The gains highlighted continued strength in consumer demand and services-related industries despite broader economic uncertainty.
AI pressures information sector
The information services sector remained under pressure, shedding 13,000 jobs in April.
The sector has lost 342,000 jobs since November 2022, equivalent to an 11% decline, according to the labour department.
Analysts have increasingly linked the weakness to the rapid adoption of artificial intelligence technologies, with some companies citing automation and productivity improvements as reasons for workforce reductions.
A broader unemployment measure that includes discouraged workers and individuals working part-time for economic reasons increased to 8.2% from 8.0%.
The number of workers employed part-time for economic reasons surged by 445,000 to 4.9 million.
Meanwhile, the household survey showed employment declined by 226,000 people, while the labour force participation rate slipped to 61.8%, its lowest level since October 2021.
Businesses remain cautious
Revisions to previous payroll estimates were mixed.
March job gains were revised higher by 7,000, while February’s figure was revised lower by 23,000, deepening the reported loss for that month to 156,000 jobs.
Businesses have remained cautious on hiring as they navigate uncertainty surrounding trade, immigration and tax policies.
At the same time, relatively low layoff levels and resilient consumer spending have helped stabilise the labour market.
Economists said the full impact of the conflict with Iran and higher oil prices has yet to appear clearly in employment data.
Rising fuel costs have already strained lower-income households and sectors such as airlines, retail and leisure, though hiring plans made months in advance may delay any visible effects in labour market reports.
This post US jobs report beats forecasts in April as unemployment holds steady at 4.3% may be modified as updates unfold
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