U.S. Job Growth Exceeds Forecasts Despite Tariffs

The U.S. economy added 177,000 jobs in April 2025, surpassing most economists' expectations and indicating continued labor market strength despite recent GDP contraction and uncertainty from President Trump's newly implemented tariffs. The unemployment rate remained steady at 4.2%, with only modest growth in average hourly earnings. April's job gains were slower than March's revised total of 185,000, but sectors such as healthcare, transportation, and financial activities contributed to the increase, while federal government employment declined. Financial markets responded positively, with stock futures rising after the report. Analysts warn that the full effects of tariffs and trade policy uncertainty may not be felt until later in the year, potentially resulting in slower hiring or layoffs. Experts caution that while current job numbers are encouraging, ongoing policy changes may bring new challenges in the coming months.