Paul Wiseman, AP Economics Writer
WASHINGTON (AP) — American employers added an astounding 177,000 jobs in April as the job market showed resilience in the face of President Donald Trump’s trade war.
Employment fell slightly from the revised 185,000 in March, which surpasses the forecast of economists of 135,000 employment. The Labor Bureau reported Friday that the unemployment rate remains low 4.2%.
Trump’s aggressive and unpredictable policies, including massive import taxes, clouded the outlook for the economy and job markets, and raised fears that the US economy was heading towards a recession.
Friday’s report shows that employment, one of the strongest aspects of the US economy, remains solid, but many economists expect the negative effects of the trade war to come to fruition for American workers and potentially President Trump this year.
Christopher Lapkey, chief economist at FWDBONDS, a financial market research firm, said:
The shipping and warehouse companies added 29,000 jobs last month, suggesting that imports built stock before new tariffs hit. Healthcare companies have added nearly 51,000 jobs, bars, restaurants and 11,000 construction companies. The factory lost 1,000 jobs.
The Labor Bureau’s revision shaved 58,000 jobs from its salaries in February and March.
The average hourly wage has increased by 0.2% since March and 3.8% over a year ago, approaching 3.5%, which economists believe is in line with the 2% inflation the Federal Reserve wants to see.
Trump’s massive tax on imports into the US is likely to raise the costs for Americans and American businesses that rely on foreign supplies. They also threaten to slow economic growth. His immigration crackdown threatens to make it more difficult for hotels, restaurants and construction companies to fill jobs. By banishing federal workers and canceling federal contracts, Elon Musk’s government efficiency risks wiping out work within and out of the government.
The dramatic changes have shaken the market and consumers. The conference committee, a business group, reported Tuesday that it has fallen to its lowest level for five months since the start of the Covid-19 pandemic.
Still, Bill Adams, chief economist at Comerica Bank, wrote the Jobs Report, “It’s safe and just normal. The softer labor market fears due to tariff uncertainty fell unrealized last month. There are indications that businesses are curbing employment and capital spending plans, and consumers are becoming more cautious towards discretionary spending.”
American workers do at least one thing. Despite uncertainty about fallout from Trump’s policies, many employers don’t want to risk letting go of their employees. Not after struggling to bring people back from a massive but short-lived layoff from the pandemic.
“For now, the number of people filing unemployment rates and unemployment benefits claims each week remains low by historical standards,” Boston University economist Brian Bethune said this week.
The federal workforce has dropped 9,000 in addition to 17,000 job losses in February and March, but the full impact of mask Doge Cuts may not be seen yet. Bethune noted that job cuts by billionaire Doge are still being challenged in court. Also, some people leaving federal agencies are forced to retire early and cannot count as unemployed.
After the number of jobs was announced, Trump repeated his call for the Federal Reserve to lower benchmark short-term interest rates, which rose to combat inflation. Trump said that the true social media platforms have “no inflation” and “strong employment.”
However, as long as the job market is healthy, the Fed will likely remain on the sidelines as it takes time to assess the impact of tariffs. Federal Reserve Chairman Jerome Powell has stressed that the job is likely to push prices up in the coming months, and central banks are wary of the possibility of higher inflation.
The Fed usually fights inflation at higher interest rates, so it rarely cuts any significant short-term interest rates right away. Courses may change as layoffs skyrocket and unemployment rises.
Some US companies support the benefit of Trump’s protectionist policies.
Milliken & Co. Allen Jacoby, executive vice president of textiles, said cheap Chinese imports are undermining business at the Spartanburg, South Carolina manufacturer. His division has produced Polartec fabrics for brands such as North Face and Patagonia, closing six plants and cutting salaries by 12% since 2019.
Trump’s tariffs could improve sales and employment for Milliken, he said. “It’s too early to tell, but there’s more optimism than pessimism,” he said.
Most Americans still enjoy job security, but many who have lost their jobs say it’s difficult to find a job.
Jason Schunkewitz, 33, was fired by a startup that uses virtual reality to train caregivers. Denver residents were single, debt free and took a little break before they began their job hunting in earnest.
He has a background in employment training and economic development. This is an area that relies heavily on government grants. Trump’s spending cuts have eliminated some grants and created uncertainty about others. Schunkewitz says many nonprofits have now postponed employment.
“In some cases, they were silent,” he said.
Schunkewitz develops the business of making Charcuterie-to-Go packs (hardened salami, aged cheese, dried fruits) for skiers, hikers and other adventurers. The business is in its early stages, but he said: “I hope it will become a full-time job.”
AP Economics Writer Christopher Al Gerber and AP Retail Writer And Inogio contributed to this story.
Original issue: May 2, 2025 8:38am EDT
