United States: Job gains beat expectations in April
Latest reading: Total non-farm payrolls grew by 177,000 in April, below the downwardly revised 185,000 gain in March but above market expectations. Federal government jobs fell as part of the new Trump administration’s push to slim the size of the state, while employment rose in health care, transportation and warehousing, financial activities and social assistance. Meanwhile, the unemployment rate was steady at 4.2%.
The data shows that the labor market remained robust at the outset of Q2, notwithstanding the shock from the imposition of higher import tariffs on a raft of goods.
Panelist insight: Commenting on the data, Nomura analysts said:
“The April employment report will be rightly downplayed as backward-looking. The survey reference period was just one week after Liberation Day, and labor data typically lag in a growth slowdown. Notably, initial and continuing jobless claims ticked higher in this week’s data (after the April NFP survey). Claims data can be noisy, but labor market risks remain skewed to the downside as businesses react to tariff announcements.”