Key facts
- US employers added 115,000 jobs in April, exceeding the forecast of 65,000.
- The unemployment rate held steady at 4.3%.
- Average hourly earnings increased by 0.2% month-over-month and 3.6% year-over-year.
- Healthcare and transportation/warehousing sectors saw significant job gains.
- The Iran conflict has impacted global oil supplies and raised gasoline prices.
The drivers behind current interest rate movements are being closely examined, with factors including Federal Reserve policy, recent jobs data, and the geopolitical impact of the Iran conflict under scrutiny. U.S. employers added a surprising 115,000 jobs in April, surpassing forecasts of 65,000, despite significant disruptions to global oil supplies stemming from the Iran war. The unemployment rate remained stable at 4.3%.
While the conflict has sent average U.S. gasoline prices above $4.50 per gallon, its impact on the American job market has been less severe than anticipated. Healthcare led job gains with 37,000 new positions, followed by transportation and warehousing with 30,000. Conversely, manufacturers shed 2,000 jobs in April. Revisions to previous months' data also reduced payroll figures by 16,000.
The labor force participation rate declined to 61.8%, its lowest point since October 2021, attributed partly to Baby Boomer retirements and immigration policies. Experts suggest the economy now requires fewer new jobs to maintain current unemployment levels. Average hourly earnings saw a modest increase of 0.2% from March and 3.6% from April 2025, consistent with the Federal Reserve's inflation target.
Despite the oil shock, the job market is showing signs of recovery, boosted by consumer spending from tax refunds. However, hiring progress has been uneven, with strong months offset by significant job losses in February. Healthcare has been a dominant sector for job creation over the past year.