U.S. Job Growth Tops Expectations in April

Nonfarm payrolls increased by 115,000 in April, well above expectations of 55,000, while the unemployment rate held steady at 4.3%. Revisions to prior months were mixed, with February payrolls revised down by 23,000 to -156,000 and March revised up by 7,000 to 185,000. On net, employment over the two-month period was 16,000 lower than previously reported.

Both the labor force participation rate, at 61.8%, and the employment-population ratio, at 59.1%, changed little in April.

Job gains were concentrated in health care, transportation and warehousing, and retail trade, suggesting continued demand in service-oriented and logistics sectors. At the same time, federal government employment continued to decline.

Despite the headline beat, hiring momentum remains restrained. Employers have largely stayed on the sidelines, reluctant to expand headcount but also avoiding widespread layoffs, as they navigate uncertainty tied to tariffs and elevated interest rates.