In April, US nonfarm payrolls increased by 177,000, surpassing expectations and primarily driven by growth in healthcare and transportation sectors. Federal employment, however, saw a decline due to initiatives from the Department of Government Efficiency (DOGE). The unemployment rate remained steady at 4.2%, reflecting stability over the past year. Moving forward, the economic landscape may face challenges as recent tariffs are expected to affect employment levels, prompting companies to focus on maintaining profit margins. Consequently, the Federal Reserve is anticipated to maintain current interest rates at the upcoming meeting.
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).
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.
Collection
[
|
...
]