OAN Staff James Meyers
9:46 AM – Friday, May 2, 2025
A new April jobs report has revealed that the U.S. economy added 177,000 jobs last month, which exceeded analysts expectations due to tariff concerns.
The unemployment rate remained the same at 4.2%, the Bureau of Labor Statistics said Friday.
According to a survey done by Bloomberg, economists expected a slower job growth of 138,000, expecting businesses to pull back due to facing hefty tariffs.
“Today’s report is a welcome surprise showing a resilient labor market where employers continue to grow their workforce despite prevailing economic uncertainties,” Ger Doyle, U.S. country manager at staffing firm ManpowerGroup, said in a note.
“However, there are still cracks in the foundation that highlight signs of strain in the labor market,” he added, citing fewer job openings compared to 2024.
Financial services, transportation, social assistance and health care were among the industries that added jobs last month.
The latest jobs report also showed the impact of Elon Musk’s DOGE department, which has led to massive firings and hiring stoppages across multiple agencies.
Meanwhile, Wall Street has been heavily impacted by President Donald Trump’s tariff trade war, as the market has been extremely volatile.
Futures in the stock market tied to the Dow Jones increased 346 points, 0.9%, after the job’s report was released.
“We’ve already seen how financial markets will react if the administration moves forward with their initial tariff plan, so unless they take a different tack in July when the 90-day pause expires, we will see market action similar to the first week of April,” Chris Zaccarelli, chief investment officer at Northlight Asset Management noted.
Nevertheless, the Federal Reserve is keeping a close eye on April’s payroll report as it will become a “wait-and-see” approach to policy making.
Interest rates are expected to remain unchanged with the surprisingly strong jobs report.
The odds of interest rates staying the same at the Fed’s upcoming May 7th meeting skyrocketed to 98%, according to CME FedWatch.
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