The US economy created 115,000 jobs in April, highlighting that the labour market remained relatively resilient despite the global energy disruption caused by the war. Meanwhile, the held steady at 4.3 per cent, according to data released on Friday (local time).
The report from the Bureau of Labour Statistics comes at a time when the continue to be higher by more than 50 per cent since the start of the year, with the average retail gas prices hovering above $4.55 per gallon, up 50 per cent since the war with Iran started in late February.
April jobs data a surprise: Experts
Citing a survey from Dow Jones, NBC News reported that economists expected at least 55,000 to be added and projected that the unemployment rate would remain at 4.3 per cent.
Additionally, the report also showed notable revisions to previous months’ . February employment figures were revised down by 23,000 to a loss of 156,000 jobs, while March figures were revised up by 7,000 to a gain of 178,000 jobs.
Citizens Financial co-head of global markets Eric Merlis told NBC, “The April jobs report is a clear upside surprise, showing the labor market remains resilient,” and added, “Importantly, the data suggests the hostilities in the Middle East have had little visible impact on the U.S. job market.”
The expert further said, “Stronger job growth alongside stable unemployment and contained wage pressure is exactly what the Fed wants to see.”
Which sector witnessed major job gains?
The report showed that the once again led overall job gains in April, adding 37,000 jobs, in line with the average monthly gain of 32,000 over the prior 12 months.
Notable gains of 30,000 roles were seen in the transportation and warehousing sectors, whereas the retail industry gained at least 22,000 jobs. The information technology sector also saw job losses, shedding 13,000 positions in April.
Federal government employment continued to decline in April, falling by 9,000 jobs. Since peaking in October 2024, federal government employment has dropped by 348,000 jobs, or 11.5 per cent. Federal employees on furlough during the partial were still counted as employed in the establishment survey because they worked or received, or were expected to receive, pay during the pay period that included the 12th of the month.
According to the BLS, the entire employment picture wasn’t as rosy. The total number of part-time workers increased by 445,000 to 4.9 million in April. “These individuals would have preferred full-time employment but were working part-time because their hours had been reduced or they were unable to find full-time jobs,” the BLS said.
A statement from the Bureau of Labor Statistics read, “Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; financial activities; professional and business services; leisure and hospitality; and other services.”
Hourly wages continue at a strong pace
In April, average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents, or 0.2 per cent, to $37.41. Over the year, average hourly earnings have increased by 3.6 per cent. In April, the average hourly earnings of private-sector production and nonsupervisory employees rose by 11 cents, or 0.3 per cent, to $32.23. This is despite the Consumer Price Index () inflation rising 3.3 per cent in March as a result of the Iran war fallout.
