The following is a report from The Associated Press.
American employers added a surprising 177,000 jobs in April as the job market showed resilience in the face of President Donald Trump’s trade wars.
Hiring fell slightly from a revised 185,000 in March, but that is above economist projections of 135,000 jobs. The unemployment rate remained at a low 4.2%, the Labor Department reported Friday.
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.
Friday’s report showed employment, one of the strongest aspects of the U.S. economy, remains solid, yet many economists anticipate that a negative impact from trade wars will materialize this year for American workers and potentially, President Trump.
“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,” said Christopher Rupkey, chief economist at fwdbonds, a financial markets research firm.
Transportation and warehousing companies added 29,000 jobs last month, suggesting companies have built up inventory before imported goods are hit with new tariffs. Healthcare companies added nearly 51,000 jobs and bars, restaurants almost 17,000 and construction firms 11,000. Factories lost 1,000 jobs.
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.
Trump’s massive taxes on imports to the U.S. are likely to raise costs for Americans and American businesses that depend on supplies from overseas. They also threaten to slow economic growth. His immigration crackdown threatens to make it more difficult for hotels, restaurants and construction firms to fill job openings. By purging federal workers and cancelling federal contracts, Elon Musk’s Department of Government Efficiency risks wiping out jobs inside the government and out.
The drastic changes have shaken markets and consumers. The Conference Board, a business group, reported Tuesday that Americans’ confidence in the economy fell for the fifth straight month to the lowest level since the onset of the COVID-19 pandemic.
Click here to read the full report by Paul Wiseman at The Associated Press.
