WASHINGTON—The U.S. labor market delivered a stronger-than-expected performance in April, with employers adding 115,000 jobs while the unemployment rate held steady at 4.3%, easing fears of a sharper economic slowdown and reinforcing expectations that the Federal Reserve will keep interest rates unchanged for now.
The latest Employment Situation report from the U.S. Bureau of Labor Statistics showed hiring gains in healthcare, transportation and warehousing, and retail trade, while federal government employment continued to decline. Healthcare added 37,000 jobs during the month, transportation and warehousing added 30,000 jobs and retail added 22,000 positions.
Economists had widely expected a weaker report, with Reuters noting consensus forecasts had called for approximately 62,000 new jobs. Instead, April’s payroll gains exceeded expectations even as businesses continue navigating higher energy prices, geopolitical uncertainty and ongoing labor shortages tied in part to tighter immigration policies and an aging workforce. Average hourly earnings rose 3.6% year-over-year to $37.41, according to the Labor Department.
Despite the stronger headline number, analysts said the broader labor market still shows signs of cooling. The labor force participation rate remained at 61.8%, while the number of people working part time for economic reasons increased by 445,000 to 4.9 million. Reuters described the labor market as operating in a “slow hire, slow fire” environment, with hiring remaining modest but layoffs still relatively limited.
"April’s jobs report surprised to the upside: hiring beat expectations and unemployment held steady, pointing to a resilient labor market," noted America's Credit Unions Senior Economist Dawit Kebede. "That reinforces the Federal Reserve’s stance to hold rates while inflation risks remain elevated, and markets have already priced out cuts for this year. For credit union members, a stable labor market is good news—it supports their ability to stay current on loans and borrow with confidence when they need to."