The U.S. economy added jobs at a stronger than expected pace in April, according to the Bureau of Labor Statistics (BLS). Employers added 115,000 jobs during the month, a figure that surpassed the 62,000 jobs economists polled by LSEG had predicted. The unemployment rate remained unchanged at 4.3%, aligning with LSEG economists' expectations.
Revisions to previous months' data showed February's payroll numbers were revised down by 23,000, from a reported loss of 133,000 to a decline of 156,000. March's report was revised up by 7,000, from an initial gain of 178,000 to 185,000. Combined, the employment figures for February and March were 16,000 jobs lower than previously reported.
Private sector payrolls were a significant contributor to job growth in April, adding 123,000 jobs. This figure was well above the LSEG poll's prediction of 75,000 private sector jobs. March's private payroll gain was also revised upward, from 186,000 to 190,000.
Government employment, however, saw a contraction, shedding 8,000 jobs in April. The federal government's workforce decreased by 9,000, a reduction partially offset by a gain of 1,000 state government jobs. Employment at the local government level remained largely stable.
The manufacturing sector experienced a setback, losing 2,000 jobs in April. This outcome contrasted with the LSEG economists' expectation of a 5,000-job increase in manufacturing.
Healthcare continued its steady expansion, adding over 37,300 jobs in April. This performance was in line with the sector's average monthly gain of 32,000 over the preceding twelve months. Key areas of growth within healthcare included nursing and residential care facilities, which added 14,800 jobs, and home healthcare services, which saw an increase of 10,800 positions.
Construction employment showed a gain of 9,000 jobs in April. While this added to the sector's workforce, the net change over the past year has been minimal. Within construction, nonresidential specialty trade contractors experienced significant growth (+12,600), while residential specialty trade contractors saw a decline (-8,900), representing the largest shifts within the sector.
Transportation and warehousing experienced a substantial boost, adding 30,300 jobs in April. This surge was largely attributed to a strong performance in the couriers and messengers segment, which gained 37,900 jobs. Despite this recent increase, the sector's overall employment remains approximately 105,000 jobs below its peak in February 2025.
Retail trade also contributed positively to the job market, adding 21,800 positions in April. Warehouse clubs, supercenters, and other general merchandise retailers were key contributors, adding 18,300 jobs, alongside an increase of 12,500 jobs in building material and garden supplies dealers. However, these gains were partially offset by losses in department stores (-6,600) and electronics and appliance retailers (-1,600). The retail sector has shown little overall change in employment over the last twelve months.
Social assistance programs saw an increase of 16,600 jobs in April, with individual and family services leading the growth with 24,000 new positions.
Regarding the broader workforce, the number of individuals unemployed for extended periods (27 weeks or more) was little changed at 1.8 million in April. This group constituted 25.3% of the total unemployed population. The number of individuals working part-time for economic reasons, meaning they would prefer full-time employment but could not secure it, rose by 445,000 to 4.9 million in April. These workers would have preferred full-time employment but worked part-time because their hours were reduced or they were unable to find full-time jobs.
The labor force participation rate held steady at 61.8% in April, and the employment-to-population ratio was 59.1%. Both metrics have shown little change in the month but are down over the last year, with the labor force participation rate down from 62.6% and the employment-to-population ratio declining from 60% in April 2025.
Experts offered insights into the implications of the April jobs report. Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, stated that the "More solid jobs data leaves the Fed where it's been for a while – watching and waiting, focused on the inflation side of its mandate." She noted that "Rate cuts still aren't on the near-term horizon, but the absence of inflationary threats in today's report should quiet some of the chatter about a potential hike."
Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, echoed this sentiment, saying that the report "doesn't make cutting more likely." She suggested the Federal Reserve will now "shift its focus to containing upside inflation risks now that the labor market appears back on track." Rosner further commented that "The FOMC could well feel compelled to remove the easing bias from its next post-meeting statement in June, which would suggest the hawks are gaining the upper hand on the committee for the time being." She concluded that "Strong data and inflation have likely put paid to any easing in the foreseeable future, though this could change depending on how energy prices and the situation in the Middle East develop."
