American employers added a better-than-expected 177,000 jobs in April as the job market showed resilience in the face of President Donald Trump’s trade wars.
Hiring was down slightly from a revised 185,000 in March and came in above economists’ expectations for a modest 135,000. The unemployment rate remained at a low 4.2%, the Labor Department reported Friday.
President Donald Trump’s aggressive and unpredictable policies—including massive import taxes—have clouded the outlook for the economy and the job market and raised fears that the American economy is headed toward recession.
But Friday’s report shows the damage isn’t showing up in the labor market yet.
“The labor market refuses to buckle in the face of trade war uncertainty,’’ says Christopher Rupkey, chief economist at fwd: Bonds, a financial markets research firm. “Politicians can count their lucky stars that companies are holding on to their workers despite the storm clouds forming that could slow the economy further in the second half of the year.’’
Transportation and warehousing companies added 29,000 jobs last month, suggesting that companies have been stocking up before essential imported goods are hit with a wave of new tariffs, driving prices higher. Health care companies added nearly 51,000 jobs, while bars and restaurants added nearly 17,000. Construction firms added 11,000, while factories lost 1,000.
Labor Department revisions shaved 58,000 jobs from February and March payrolls.
Average hourly earnings ticked up 0.2% from March and 3.8% from a year ago, nearing the 3.5% that economists view as consistent with the 2% inflation the Federal Reserve wants to see.
