• The US labor market showed resilience in April, following March’s strong rebound in jobs, with NFP beating forecasts while the unemployment rate kept steady.
  • Wage growth slowed, providing some relief to some Fed officials who were concerned about inflation.
  • Healthcare continues to show strong job additions, while the tech sector remains under pressure from layoffs and AI-related impacts.

Another month, another reminder that the US labor market is still resilient. April’s labor market report showed more job additions than expected while the unemployment rate held steady.

Although hiring slowed from March’s robust pace, the report suggests the labor market remains resilient as it navigates challenges from geopolitical tensions, inflation concerns, and Federal Reserve policy uncertainty.

Job Growth Beats Forecasts

Nonfarm payrolls for April showed that the US economy added 115,000 jobs, coming in higher than its forecast of 55,000, but declined from March’s 185,000 gain. Meanwhile, the unemployment rate kept steady at 4.3%. This marked a second consecutive month of solid job creation. ⁽¹⁾

The report showed that employers remained cautiously optimistic, though hiring has clearly moderated from the rapid pace seen in previous years.

Wage Growth Cools

Average hourly earnings rose 0.2% MoM and 3.6% YoY. Both figures came in below expectations of 0.3% and 3.8%, respectively. ⁽²⁾

This slower wage growth could be good news for Federal Reserve officials currently concerned about inflation, as it suggests reduced pressure on consumer prices from the labor cost side.

Healthcare and Services Lead Hiring

The healthcare sector continues to lead the way in job gains, adding 37,000 jobs, while transportation showed an addition of 30,000 jobs. Retail sector jobs increased by 22,000. ⁽³⁾

These gains demonstrate that service-sector employers, particularly those in essential industries, maintain steady demand for workers despite broader economic concerns.

Technology Sector Continues Decline

It seems that layoffs from big tech companies have started to take effect, with information services losing 13,000, part of a continuing trend that has seen the category down 342,000 jobs since November 2022. ⁽⁴⁾

Economists stated that this downturn in tech jobs is linked to the rise of artificial intelligence, which has heavily impacted hiring methods and jobs across the tech sector. This trend reflects the low-hire, low-fire environment that has characterized the sector since early 2025. ⁽⁵⁾

Federal Reserve Outlook Clouded by Mixed Revisions

Revisions from prior reports were mixed. The March count rose by 7,000 while the February number moved even lower, down by 23,000 to a loss of 156,000. The initial report put the February job loss at 92,000. ⁽⁶⁾

The report arrives as the Federal Reserve faces unusual internal divisions over monetary policy. The previous FOMC’s 8-4 vote to hold rates steady marked the highest level of dissent since 1992, with disagreements centered on future policy direction amid inflation concerns tied to the Iran war and elevated commodity prices.

Markets now expect rates to remain unchanged through year-end as officials monitor economic developments.

Sources: ⁽¹⁾ ⁽²⁾ ⁽³⁾ ⁽⁴⁾ Bureau of Labor Statistics, ⁽⁵⁾ ⁽⁶⁾ CNBC