The United States economy added 115,000 jobs in April, exceeding economist expectations despite rising energy costs and economic uncertainty linked to the US-Israel conflict with Iran.
Data released by the US Bureau of Labor Statistics showed the unemployment rate remained unchanged at 4.3%.
Economists had forecast significantly weaker hiring, with April’s total nearly double some expectations.
The employment report arrives as global energy markets remain under pressure following the closure of the Strait of Hormuz after US and Israeli strikes on Iran.
The disruption has contributed to higher gasoline prices for American consumers and raised concerns about inflation and consumer spending.
The latest figures also continue a period of volatility in the US labor market.
Non-farm payrolls fell by 156,000 in February before rebounding with gains of 185,000 in March.
After revisions to previous months, average job creation over the last three months stood at 48,000 jobs.
Economists described that pace as roughly matching the labor market’s “breakeven rate,” the level needed to absorb new workers entering the workforce.
Retail And Transportation Hiring Supported Growth
Analysts said several sectors posted stronger-than-expected hiring during April.
Thomas Ryan said the retail, transportation, and warehousing sectors showed particular strength.
“Both give relatively positive signals about the health of discretionary spending, despite the hit to consumers’ purchasing power from higher gasoline prices,” Ryan said.
The stronger-than-expected labor market report also increased expectations that the Federal Reserve will leave interest rates unchanged in the near term while monitoring inflation pressures.
Financial markets responded positively to the data.
The S&P 500 rose 0.8%, while the Dow Jones Industrial Average closed largely unchanged.
Economists Point To Mixed Signals
Despite the stronger headline numbers, some economists warned that parts of the report showed signs of slowing labor market momentum.
Ryan pointed to weaker wage growth and a decline in labor force participation among working-age Americans.
“There were mixed signals elsewhere in the report,” he said.
Still, Ryan described the overall report as positive.
“This was ultimately a positive employment report that reinforces the view that the labour market is stable and potentially even accelerating,” he added.
Samuel Tombs said hiring could weaken later this year.
Tombs said recent business surveys suggested companies may reduce hiring activity in coming months.
He projected that unemployment could rise from 4.3% to 4.7% by the end of the year.
According to Tombs, that scenario could prompt the Federal Reserve to begin lowering interest rates starting in December.
White House Says Economy Remains Stable
The White House described the employment figures as evidence that the economy remained resilient under President Donald Trump.
White House spokesman Kush Desai said the report showed “another sign that the American economy remains on a solid trajectory under President Trump.”
“Every leading indicator is pointed in the right direction, and Americans can rest assured that the best is yet to come,” Desai said.
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