US Adds 177,000 Jobs in April, Unemployment Steady at 4.2%

The U.S. labor market added 177,000 jobs in April, surpassing expectations and signaling continued resilience despite economic uncertainties and concerns over President Donald Trump's trade and economic policies. The unemployment rate remained steady at 4.2%, with job gains concentrated in healthcare, transportation, and financial activities, while federal government employment declined by 9,000 due to spending cuts. Despite robust hiring, long-term unemployment increased by 179,000 to 1.7 million, now making up 23.5% of the jobless population, raising concerns about potential emerging slack in the labor market. Wage growth cooled, with average hourly earnings rising just 0.2% for the month, below forecasts, and combined downward revisions for prior months indicated a slower employment trend than previously reported. Economists remain divided on the longer-term effects of Trump's policies, particularly tariffs, with many warning that ongoing uncertainty could eventually dampen hiring and business sentiment. Nonetheless, April's data suggest ongoing labor market stability, even as some indicators hint at potential challenges ahead.