US nonfarm payrolls rose by 177,000 in April, exceeding consensus expectations amidst the tariff announcements made by President Trump earlier in the month.
Gains were concentrated in healthcare, transportation and warehousing, though federal employment declined in part due to measures taken by the Department of Government Efficiency (DOGE).
That said, unemployment remained stable at 4.2% in April, and has remained between 4.0% – 4.2% for just under a year.
Despite the current resilience of the US labour market, the impact of tariffs is likely to place downward pressure on employment in the coming months, as firms look to protect profit margins. Today’s decision solidifies our view that the Federal Reserve will hold interest rates steady at their next meeting next week.
