The increase in employment in USA was strong in April and the percentage unemployment It remained stable, despite the great uncertainty about President Donald Trump’s commercial policies, which, according to economists, will affect recruitment plans in the coming months.
Non -agricultural payrolls in the US increased by 177,000 last month, as the progress of the two previous months were revised lower, according to data from the Statistical Labor Office published Friday (2.5.2025). The unemployment rate remained unchanged at 4.2%.
The report suggests that the labor market is continuing to be cooled gradually, a sign that businesses facing increased uncertainty about tariffs and turmoil in financial markets did not significantly change the recruitment plans. Most economists expect that the main burden of impact on punitive duties will be seen in the coming months.
“This is a good report on employment in all areas. The word ‘r’ that the labor market demonstrates in this report is durability, certainly not a recession, “Olu Sonola, head of US economic research at Fitch Ratings, said in a note. “At the moment, we should limit our enthusiasm for the future, given the background of commercial policies that will probably be a hindrance to the economy.”
US shares opened higher and government bond yields increased after the announcement, while the dollar remained lower. Investors also limited expectations to reduce the US Federal Bank (FED) interest rates in 2025.
Fed officials have pointed out that they are in no hurry to reduce interest rates until they gain more clearly on the impact that government policies will have on the economy and are widely expected to leave their reference index unchanged at their next meeting on May 6-7.
While the Fed is an independent institution, Trump has pushed it to reduce the cost of borrowing. In his post today on Truth Social After the report, he praised the strong number of employment and reiterated his call to reduce interest rates. The increase in wage situations was broad, with the level of progress in the field of healthcare.
Transport and storage employment has increased to the highest percentage since December, suggesting that increased imports and activity has enhanced the demand for workforce, as businesses hastened to prevent duties. In the meantime, manufacturing has reduced jobs as the sector saw the steepers to shrink production last month by 2020.
The Federal Government has reduced jobs for a third month – the largest such series since 2022 – reflecting the efforts of the Government Efficiency Department led by Elon Musk to reduce the federal workforce and reduce government spending.