Catenaa, Monday, May 12, 2025- The US economy added 177,000 jobs in April, surpassing analysts’ expectations and offering hope for resilience in the face of trade policy turmoil. The unemployment rate remained steady at 4.2%, according to data from the Labor Department. Despite volatility in financial markets and growing concerns about the economy, the labor market’s solid performance marked a positive surprise.
The stronger-than-expected job growth came during a period of heightened uncertainty, driven by sweeping tariff changes under former President Donald Trump. Analysts have noted that the full impact of these trade policies has yet to be felt. However, the job market’s strength provides optimism that the US may avoid a severe economic downturn, even as businesses and households grapple with rising costs and interest rates.
Hiring was particularly strong in sectors such as healthcare, warehousing, and transportation, while the federal government saw a decline in employment, a consequence of Trump’s spending cuts. Manufacturing and retail jobs also saw reductions.
Hourly wages increased by 3.8% over the last year, signaling continued wage pressure. Seema Shah, Chief Global Strategist at Principal Asset Management, suggested that the Federal Reserve is unlikely to cut interest rates soon, as the labor market remains robust and inflation persists.
Despite this optimism, analysts urge caution, pointing to ongoing policy uncertainties and potential long-term effects of tariff implementation.
