In April, the US job market exceeded expectations by adding 177,000 jobs, although hiring slowed compared to March. The unemployment rate remained steady at 4.2%. These figures reflect the labor market's resilience despite economic headwinds, including tariffs and federal workforce cuts. President Trump hailed the job growth as a success of his policies, emphasizing strong employment figures amidst economic uncertainty.
However, the US economy experienced a 0.3% contraction in the first quarter, largely due to increased imports as companies adjusted to new tariffs. While sectors such as transportation saw growth, construction and manufacturing faced declines.
Meanwhile, federal employment decreased by 9,000 jobs in April, continuing a trend since January. This reduction is part of broader efforts to streamline government operations. Economists express concern over potential long-term effects of tariffs and economic challenges, including rising layoffs and hiring freezes.
As the Federal Reserve prepares for its upcoming meeting, President Trump has pushed for interest rate cuts, citing low inflation. The market remains cautiously optimistic, balancing strong job data against uncertainties surrounding trade policies.
