U.S. Adds 177,000 Jobs in April Despite Tariff Pressures/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. employers added 177,000 jobs in April, defying predictions of a sharper slowdown amid President Trump’s tariffs and policy turbulence. The unemployment rate held steady at 4.2% as labor participation rose slightly. Economists remain cautious, citing rising costs, federal layoffs, and immigration restrictions as looming risks.
U.S. Adds 177,000 Jobs Despite Tariff Pressures: Quick Looks
- April payrolls rise by 177,000, beating 135,000 forecast
- Unemployment rate remains unchanged at 4.2%
- Labor force participation up as 518,000 join workforce
- Wage growth hits 3.8% year-over-year
- Trump’s tariffs and immigration crackdown raise recession fears
- Department of Government Efficiency layoffs not yet fully visible
- Federal contract cancellations could soon affect private payrolls
- Consumer confidence continues declining amid economic uncertainty
Deep Look: U.S. Job Growth Outpaces Expectations in April, But Headwinds Loom
WASHINGTON — The U.S. job market continued to show unexpected strength in April, with employers adding 177,000 jobs, outpacing analysts’ forecasts and providing a glimmer of optimism amid escalating economic uncertainty caused by President Donald Trump’s aggressive trade and immigration policies.
The Labor Department’s monthly jobs report, released Friday, showed the unemployment rate held steady at 4.2%, with average hourly earnings rising 3.8% from a year earlier—near levels consistent with the Federal Reserve’s 2% inflation target.
Economists had anticipated a slowdown to around 135,000 new jobs, making the April figure a notable beat despite growing fears of policy-driven economic drag.
“We are not seeing right now any really adverse effects on the employment market,” said Brian Bethune, an economist at Boston College. “But risks are building.”
Supply Chain Stockpiling, Labor Force Growth
Some of the hiring was likely driven by transportation and warehousing, which added 29,000 jobs as companies rushed to stock inventories before Trump’s new import tariffs took effect.
The labor force expanded by 518,000 people, nudging the participation rate slightly higher as more Americans sought work amid rising wages and inflationary pressures.
However, revisions to February and March cut a combined 58,000 jobs from previously reported totals, tempering the headline gain.
Risks From Trump’s Trade, Immigration, and Budget Policies
While April’s figures show resilience, many economists warn of impending turbulence. Trump’s massive tariffs on imports, some reaching over 100%, are expected to increase costs for businesses and consumers alike, while potentially triggering supply chain disruptions and consumer pullbacks.
In parallel, the Department of Government Efficiency (DOGE)—led by tech mogul Elon Musk—is advancing plans to slash federal employment and terminate contracts with private vendors. These cuts, though not fully reflected in April’s data, could soon ripple into the broader economy.
“We expect the steep tariff increases and the surge in uncertainty and financial market volatility will result in a more pronounced labor market downshift,” wrote Lydia Boussour, senior economist at EY. “Large cuts to the federal workforce and the cancellations of many government contracts will also be a drag on payroll growth in coming months.”
Additionally, Trump’s immigration restrictions have begun affecting labor availability, especially in industries like hospitality, food services, and construction, which traditionally rely on immigrant labor.
“A slowdown in immigration will weigh on labor supply dynamics, further constraining job growth,” Boussour warned. “We foresee the unemployment rate rising toward 5% in 2025.”
Consumer Confidence Plummets
Compounding concerns is the steady erosion of consumer confidence. The Conference Board reported that sentiment in April hit its lowest point since the COVID-19 pandemic, driven by fears of inflation, job insecurity, and economic instability.
Markets have also shown unease, with financial volatility increasing in response to Trump’s tariff threats, international trade standoffs, and ongoing legal challenges to his federal restructuring agenda.
Job Retention Still a Priority for Employers
Despite mounting pressures, most employers remain reluctant to shed workers—a holdover lesson from the 2020 pandemic, when mass layoffs led to long recovery delays.
“They laid millions off back then and had a hell of a time getting them back,” Bethune said. “That memory is still fresh.”
So far, DOGE-driven layoffs haven’t had a measurable effect on monthly payroll totals. Many federal employees affected are reportedly taking early retirement, meaning they aren’t classified as unemployed under Labor Department standards.
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