- US economy added 115,000 jobs in April, far above forecasts
- Unemployment rate stayed unchanged at 4.3 per cent
- Healthcare, transport and retail led hiring despite economic uncertainty
The US labour market delivered a stronger-than-expected performance in April, offering a rare sign of stability as the conflict involving Iran, Israel and the US continued to unsettle the global economy.
According to fresh data from the Bureau of Labor Statistics, the US economy added 115,000 jobs during the month, more than double economists’ forecasts of around 55,000. The unemployment rate remained unchanged at 4.3 per cent.
The figures arrive at a difficult moment for the US economy, with rising oil prices, higher fuel costs, government layoffs and ongoing geopolitical tensions creating uncertainty for businesses and consumers alike. The labour market, however, appears to be holding up better than many analysts expected.
Hiring holds firm despite rising pressure
Much of the April hiring came from healthcare, transportation and warehousing, retail, and social assistance sectors. Together, those industries added around 106,000 jobs.
Healthcare alone added 37,000 positions, while transportation and warehousing contributed another 30,000 jobs as demand for logistics and delivery services remained steady. Retail employment also rose by 22,000.
Private payroll firm ADP separately reported that private employers added 109,000 jobs in April, marking the strongest monthly increase since January 2025.
Dr Nela Richardson, ADP’s chief economist, reportedly said larger firms continued to have the resources to hire, while smaller businesses remained flexible enough to adapt in a complicated economic environment.
Still, not every sector showed strength. Professional industries lost around 8,000 jobs, while federal government employment continued to shrink sharply. The federal workforce has reportedly fallen by 348,000 jobs since November 2024 amid continuing cuts across government departments.
The latest report also included revisions to earlier employment figures. February’s losses were revised deeper to 156,000 jobs, while March’s gains were adjusted upward to 185,000 jobs.
Oil prices, Fed pressure and a nervous economy
Despite the stronger jobs data, the wider economic picture remains uncertain.
Oil prices have climbed sharply since the Iran conflict intensified earlier in the year, pushing petrol prices across the US above £3.35 ($4.50) per gallon in many areas. Analysts have warned that persistently high energy costs could eventually slow consumer spending and weigh on economic growth.
Ger Doyle, regional president for North America at ManpowerGroup, reportedly said the labour market was still showing resilience “at the headline level”, though hiring patterns suggested employers were becoming increasingly selective.
Meanwhile, the US Federal Reserve has kept interest rates steady as policymakers try to balance slowing job growth with stubborn inflation and the economic risks tied to the Middle East conflict.
Outgoing Federal Reserve chair Jerome Powell reportedly said he would remain on the Fed’s board after stepping down as chair, amid ongoing investigations linked to renovations at the central bank’s headquarters. His expected successor, Kevin Warsh, is facing pressure from the White House to support lower interest rates, though any major policy shift would still require wider backing from Fed officials.
Economists now appear divided on whether the labour market can continue resisting the pressure from higher energy prices and geopolitical instability in the months ahead. For now, however, employers in several major sectors are still hiring, even as uncertainty hangs over the wider economy.
