April Jobs - Another Solid Month

Healthy job gains; unemployment steady.  In April, U.S. employers added 115k jobs and the unemployment rate was unchanged at 4.3%.  Today’s report showcases a labor market that appears to be stabilizing after near-zero job growth in 2025.  While demand for workers remains subdued, layoff activity is still low and fiscal policy underpinned by the OBBBA is providing tailwinds for consumer spending and business investment.  The stronger jobs report provides Fed policymakers with room to keep rates unchanged as they assess inflationary risks from the war with Iran.

• Payrolls grow 115K in April.  The U.S. labor market added 115k jobs in April building on 185K (positively revised) gains in March and compared to expectations of 65k.  The results marked the first example of back-to-back gains in nearly a year – over the last two months, employers added 300K jobs – more than doubling combined forecasts for +130K.   The health care sector added 37K jobs in the month, consistent with the trailing twelve-month average of +32K.  Transportation and warehousing added 30K jobs while retail trade added 22K in the month.  Federal government employment continued its decline, shedding 9K in April.  Since reaching a peak in October 2024, federal government employment is down 348K, or 11.5%.  Government employees that were furloughed during the partial shutdown were counted as employed for the purposes of this report.  Lastly, employment in information-related sectors continued to trend downward shedding about 13K jobs.  Overall, information-related employment is down about 342K or 11.0% since a recent peak in November 2022.
• 4.3% unemployment in April, unchanged from March.  The U.S. unemployment rate registered 4.3% in April, in line with March and expectations for the same.  At 61.8%, the labor force participation rate roughly matched the March level of 61.9%.