Job Market Remained Solid in April, Even as Energy Costs Rose


Sydney Ember

Job creation remained solid in April, as businesses shrugged off uncertainty brought on by the war in Iran and higher gas prices.

Employers added 115,000 jobs last month, surpassing expectations. The unemployment rate remained at 4.3 percent.

The jobs tally was taken in mid-April, as employers were still evaluating the impact of the war in Iran. If higher gas prices persist and consumers pull back more broadly to compensate, economists anticipate that could dampen job creation and lift the unemployment rate.

April was the second consecutive month of strong job growth, suggesting that the labor market could be breaking out of its monthslong low-hire, low-fire stasis. The March numbers were revised up modestly, to 185,000.

But the overall picture is not quite as chipper, and it is not clear whether robust recent hiring will translate into sustained momentum. The last three months have averaged 48,000 jobs added, a relatively glacial pace. The labor force shrank and the number of unemployed workers rose. Wage growth ticked up slightly but continued to trend downward.

“We’ll need to see a couple more months of this; it has been volatile,” said Matthew Martin, senior economist at Oxford Economics. “But if we see sustained growth, obviously that would be a major positive for the economy.”

  • Narrow growth: The labor market has become increasingly dependent on health care, which has powered job creation for months. The sector and related professions in social assistance added nearly 54,000 jobs last month, a substantial portion of total job growth. Other industries also added jobs, including transportation and warehousing, retail trade and leisure and hospitality.

  • Hints of A.I?: Economists have been closely watching the information and professional and business services sectors for evidence that artificial intelligence is beginning to affect jobs. Although the technology has not yet led to widespread job losses, the April jobs report could stoke concerns. The information sector, which includes tech companies, lost 13,000 jobs last month, and finance slashed 11,000 jobs. Both sectors have announced high-profile layoffs recently.

  • Wait-and-see: Employers have been in something of a hiring holding pattern as they have tried to ride out wave after wave of uncertainty for the past year. Just as it appeared that they could begin to move past the unknowns of President Trump’s tariff policy, a new uncertainty in the form of the war in Iran arrived.

  • Low layoffs: Layoffs generally remain sparse despite some high-profile cuts at technology companies, as employers continue to hold onto their workers. Jobless claims have remained exceedingly low, reflecting the low-fire dynamic in the labor market.

  • Spending is key: Consumer spending has so far held up, juiced in part by higher tax refunds. But it is under mounting strain from persistent inflation and higher gas prices brought on by the war in Iran.



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