The U.S. labor market continued its steady expansion in April, with employers adding 177,000 jobs and the unemployment rate remaining unchanged at 4.2%, according to the latest report from the Bureau of Labor Statistics (BLS).
The jobs report is a lagging indicator and may not immediately reflect rapid changes, such as recent mass layoffs in the federal government. Employees on paid leave or receiving severance are still counted as employed in the establishment survey, which can delay the appearance of job losses in the official figures.
Several analysts and commentators note that the full impact of federal workforce cuts, especially those announced by the Department of Government Efficiency (DOGE), will not be fully visible in the jobs data until severance periods end, likely by late summer or early fall.
Weekly jobless claims, which rose to 241,000 for the week ending April 26, provide a more immediate signal of labor market stress and suggest some softening in the job market.
The largest gains came from the health care sector, which added 51,000 jobs-mirroring its average monthly growth over the past year. Hospitals and ambulatory health care services were the primary drivers within the sector. Transportation and warehousing also saw a strong month, adding 29,000 jobs, with notable increases in warehousing and storage, couriers and messengers, and air transportation.
Financial activities employment continued its upward trend, increasing by 14,000 jobs in April. The industry has rebounded by 103,000 jobs since its low point in April 2024. Social assistance added 8,000 jobs, though this was a slower pace compared to the average monthly gain of 20,000 over the previous year. Federal government employment fell by 9,000 in April and has dropped by 26,000 since January.
The unemployment rate held steady at 4.2% for the third consecutive month, with 7.2 million people unemployed. Rates among major demographic groups-including adult men (4.0%), adult women (3.7%), Whites (3.8%), Blacks (6.3%), Asians (3.0%), and Hispanics (5.2%)-showed little or no change.
Average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents (0.2%) to $36.06 in April. Over the past year, earnings have increased by 3.8%. The average workweek for all employees remained unchanged at 34.3 hours.
The labor force participation rate was little changed at 62.6%, and the employment-population ratio held at 60.0%. The number of people employed part-time for economic reasons remained steady at 4.7 million. The number of workers who have given up looking for work was also stable at 414,000.
