American employers added 177,000 jobs in April, exceeding expectations and signaling continued labor market strength despite mounting pressure from President Donald Trump’s trade policies and a wave of new import tariffs.
The data, released Friday by the Labor Department, showed a modest slowdown from March’s revised gain of 185,000 jobs, but well above economists’ forecasts of 135,000. The unemployment rate held steady at a historically low 4.2%, while average hourly earnings rose 0.2% month-over-month and 3.8% year-over-year, approaching levels consistent with the Federal Reserve’s 2% inflation target.
The report arrives as Trump’s aggressive tariff strategy reshapes the economic landscape. A 25% tax on imported goods took effect in early April, and a second round targeting auto parts is set to begin Saturday. The administration’s policies, which also include sweeping immigration restrictions and large-scale federal workforce reductions led by Elon Musk’s Department of Government Efficiency (DOGE), have raised recession fears and rattled consumer confidence.
Despite these pressures, job growth remained broad-based. Healthcare added 51,000 positions, transportation and warehousing grew by 29,000—suggesting businesses may be stockpiling ahead of further tariff-driven price increases—while bars and restaurants added nearly 17,000 jobs and construction rose by 11,000. Manufacturing, however, shed 1,000 jobs, and the federal government lost another 9,000, adding to February and March’s combined 17,000 decline. The full impact of Musk’s federal cuts may not fully appear in the data, as traditional unemployment may not account for some departures.
In response to the report, Trump renewed calls for the Federal Reserve to cut interest rates, insisting on Truth Social that “employment [is] strong” and there is “NO INFLATION.” Still, Fed Chair Jerome Powell has cautioned that tariffs could stoke inflation in the coming months. As long as the labor market remains steady, the central bank is unlikely to lower rates unless layoffs surge or unemployment rises significantly—developments not yet seen in the data.
