The US economy added 177,000 jobs in April, breaking through analysts’ expectations despite economic turmoil in the early months of Donald Trump’s second term as president.
Data released by the Labor Bureau on Friday suggests the job market remains stable despite the uncertainty driven by Trump’s tariff campaign.
The healthcare industry has added 51,000 jobs, the highest gross profit, totaling in line with average monthly growth over the past 12 months. The transportation and warehouse sector also rose significantly, attracting 29,000 jobs in April.
But experts say the growth in these sectors in particular could be a signal that the industry is stockpiling before Trump’s high tariffs begin and prices for imports rise.
“People wanted to bring in front roads and more material before the customs hike,” said Stuart Mackintosh, executive director of the group at Thirty, a financial think tank.
Although Friday’s labor report included positive indications, MacIntosh added that other economic indicators could show uncertainty across the market, ultimately weakening future employment statistics.
“Businesses large and small are warning about positive forecasts of future revenues. “We don’t know. We’re uncertain.) we expect a decline,” McIntosh said.
“I think it will soon settle into employment.”
It slows growth
Still, Friday’s labor report showed jobs in the United States remained stable despite a series of changes since Trump took office in January.
For the past four months, Trump has pursued aggressive trade policies designed to hamper trade deficits, primarily through tariff threats. Currently, the US has a blanket policy of 10% tariffs on imports, and there is a possibility that individual countries will have high tariffs within the next three months.
However, China is currently facing 145% tariffs as a trade war with the US is underway. Meanwhile, Canada and Mexico carry a 25% tariff on all products that are not local free trade agreements intermediated during their first term.
Experts warn that Trump’s volatile trade policies could have long-term negative knock-on effects, including slowing economic growth and the possibility of a recession.
However, a report on Friday shows that the US labor market still does not reflect widespread harm. The unemployment rate stabilized at 4.2% in April.
The number of shortages of workers working part-time for financial reasons also showed little change that did not hold 4.7 million people. The labor force participation rate was 62.6%.
Wages have also been engraved. The average hourly wage has increased by 6 cents from last month to $36.06. Average hourly revenues are up 3.8% per year.
However, the number of long-term unemployed Americans classified as more than 27 weeks has increased by 179,000, with a total of 1.7 million people.
However, other reports do not show the same strong employment growth. ADP Research, a private sector pay tracking company, added only 62,000 jobs in April, marking its smallest monthly profit since July 2024.
In a news release accompanying the findings, ADP chief economist Nella Richardson said “anxiety” is a common emotion.
“Employers are trying to harmonize policy with consumer uncertainty by implementing mostly positive economic data,” she explained.
Meanwhile, another report from employment services company challenger Gray & Christmas showed that in April the US economy cut more than 105,000 jobs while employment benefits were available.
Government cuts
One area of Friday’s report was government employment, one area that showed significant losses.
The Labor Bureau’s report showed that 9,000 jobs had fallen in April alone. Overall, we have found that 26,000 government workers have lost their jobs since January.
The report did not speculate on the reasons for this downward trend, but the Trump administration voices its mission to reduce the federal government.
As the country’s largest employer, the federal government had over 2,925,000 employees as of 2023. But Trump is pursuing a policy of massive layoffs, assuming the government is “bloated” with “waste, fraud and abuse.”
The newly established Office of Government Efficiency (DOGE) is responsible for streamlining the federal workforce under the leadership of high-tech billionaire Elon Musk.
Hundreds of thousands of federal workers are expected to be fired by the end of the year, but many Doge Cuts are now being challenged in federal courts and through programs like the Merit Systems Protection Board, which protects employee rights.
As a result, some employees are on paid leave. Others are currently receiving retirement benefits. Neither group will be classified as “unemployed” for the purposes of the April Job Report.
The report found that Challenger, Gray and Christmas have cut a total of 282,227 federal jobs so far this year. This indicates that employment cuts in the government sector have increased by 680% since April 2024.
Downsizing has already reached a key function of government. Earlier this month, news agency Reuters reported that the Food and Drug Administration has suspended quality control programs on its food emergency response network due to staffing.
A broader economic downturn
However, government cuts could affect the job market even beyond the federal workforce.
The Trump administration also attempted to roll back government spending and cut back on grants, contracts, and foreign aid programs that use US businesses as private contractors.
For example, we believe benefits in the healthcare sector this month could be short-lived amid cuts in government agencies like the Department of Health and Human Services.
These sectors often fund universities and private companies to conduct research on their behalf.
“The administration is cutting funding for institutions like higher education and research institutions. They are cutting grants for specific community grants, grants for child mental health services,” said Jessica Fulton, a senior fellow at the Joint Center for Think Tanks, focusing on Black communities.
“These are employment investments,” Fulton explained. “We can see the impact of those (cuts) on future job reports.”
She also pointed to legislation in Congress, which could also lead to employment through a shrinking health sector.
Critics argue that the current Republican-led budget bill would require cuts from Medicaid, a government insurance program for low-income people, to fund tax cuts and other party priorities.
“Potential reductions in programs like Medicaid could threaten these jobs in the future,” Fulton said. “We’re waiting.”
Other industries likewise have economic turbulence first. This week, several companies, including social media giant Snap and automaker Stellantis, paused their future guidance for investors. Stellantis already struck 900 workers in early April amid a tariff-driven uncertainty.
The Department of Commerce has released a report showing that US gross domestic production (GDP) had a 0.3% annual decline in the first quarter of 2025 compared to 2.4% growth in the fourth quarter of 2025.
Another report released Tuesday by the Conference Committee, an economic nonprofit, showed consumer confidence fell 7.9 points in April.
“Consumer confidence fell for the fifth consecutive month in April, dropping to levels not seen since the onset of the community’s pandemic,” said Stephanie Gichard, a senior economist at the conference committee, in a statement.
The report also notes the growing fear of the job market conditions. An estimated 32% of Americans expect fewer jobs available in the next six months.