US adds 177,000 jobs in April, holding sturdy amid tariff fears

The U.S. added 177,000 jobs and the unemployment rate stayed flat in April, according to data released Friday by the Labor Department.

The April jobs report showed the economy adding jobs at a better-than-expected pace. Economists expected the U.S. to add 130,000 jobs and keep the jobless rate steady at 4.2 percent, according to consensus estimates.

The employment report capped off a flurry of economic data released this week showing the ways Trump’s trade agenda is already shaping the economy. The president has shifted his economic messaging amid growing pressure from voters and his own party.

The president, however, was eager to tout the solid jobs report Friday morning on Truth Social.

“Just like I said, and we’re only in a TRANSITION STAGE, just getting started!!! Consumers have been waiting for years to see pricing come down,” Trump wrote, while claiming prices for gasoline and groceries were already far lower than federal and private-sector data shows.

U.S. first-quarter gross domestic product (GDP) contracted by 0.3 percent as wholesalers ratcheted up imports ahead of tariffs. Imports are a subtraction in the calculation of GDP, which otherwise fell back modestly.

April’s 177,000 jobs is shy of the robust 228,000 jobs the economy added in March. The unemployment rate held steady at 4.2 percent across both months.

There were about 7.2 million people looking for work in April. The size of the labor force ticked up to 171 million people, and the labor force participation rate increased for the second straight month to 62.6 percent.

Investors reacted positively to the report, while noting sensitive conditions within the economy.

“Another stronger than expected jobs report is encouraging, although definitely not top of mind considering the ongoing uncertainty around tariffs and global trade,” Joe Gaffoglio, CEO and President at Mutual Of America Capital Management, wrote in a commentary.

“While the labor market continues to be a bright spot, that could change quickly if the imposition of tariffs leads to disruptions in supply chains and global trade.”

Despite the healthy numbers in Friday’s survey, other employment data this week showed some signs of weakness.

Job openings decreased in March to 7.2 million from 7.5 million in February, down from more than 8 million in March of last year. Private sector payrolls in the ADP survey fell far short of expectations at just 62,000 jobs added.

Unemployment insurance claims came in hot at 241,000, above economists’ forecast around 225,000 and higher than the previous week’s number of 223,000.

The April jobs number showing underlying strength in labor conditions will likely give the Federal Reserve reason to continue its pause on interest rate cuts, which has been a point of criticism from Trump.

The U.S. central bank paused cuts during its January and March meetings after slashing rates three times in the back half of last year.

Inflation eased significantly this week, as measured by the Commerce Department’s personal consumption expenditures price index, which fell from a 2.7 percent annual increase to 2.3 percent, close to the Fed’s target rate of 2 percent.

Updated at 9:07 a.m. EDT