Research
May 02, 2025

Total U.S. jobs

U.S. Job Market Outperformed in April, Adding 177,000 Workers Despite Lingering Uncertainties

The U.S. economy added 177,000 nonfarm payroll jobs in April, following a gain of 185,000 in March and surpassing the consensus estimate of 130,000. Despite ongoing uncertainties and significant policy shifts, the data point to continued economic momentum and a still-tight labor market. April marked the 52nd consecutive month of job growth—a heartening trend.

Total nonfarm employment now stands at a record 159.94 million, exceeding the pre-pandemic peak from February 2020 by 7.23 million jobs, a 4.7% increase over the past five years.

Given the current economic uncertainties, sentiment and business activity have lagged so far this year. Even so, consumers tend to spend more when supported by steady job and wage growth, and the continued strength of the labor market could provide some reassurance for restaurant operators seeking to boost traffic and sales. That said, employment data will be closely monitored in the coming months to gauge how the labor market responds to ongoing policy shifts.

The unemployment rate was unchanged at 4.2% in April for the second straight month, though it remains low by historical standards. Despite an encouraging overall report, the number of unemployed individuals increased from 7.08 million to 7.17 million, the highest since October 2021.

At the same time, the number of employed individuals grew from 163.51 million to 163.94 million, another record high. Meanwhile, labor force participation showed a modest rebound, edging up from 62.5% to 62.6%, a 3-month high.

Average hourly earnings for private-sector production and nonsupervisory workers rose by 0.3% in April, strengthening a bit from the 0.2% gain seen in March. On an annual basis, wages were up 4.1%, marking a solid rate of growth. Even so, labor cost pressures have eased considerably from their peak in March 2022, when wage growth hit 7.0%.

Job growth in April was mixed but mostly positive. There was strong growth reported for private education and health services; trade, transportation, and utilities (excluding retail trade); and leisure and hospitality (including eating and drinking places). At the same time, employment declined for the federal government, manufacturing and other services. The private sector contributed 167,000 new jobs, while government employment increased by 10,000. Below is a detailed breakdown of sector employment changes for April, ranked from highest to lowest:
  • Private education and health services: +70,000
  • Trade, transportation, and utilities: +32,000 (retail trade: -1,800)
  • Leisure and hospitality: +24,000 (eating and drinking places: +16,600)
  • Professional and business services: +17,000
  • Financial activities: +14,000
  • Local government: +13,000
  • Construction: +11,000
  • State government: +6,000
  • Mining and logging: +1,000
  • Information: unchanged
  • Manufacturing: -1,000
  • Other services: -1,000
  • Federal government: -9,000

Track more economic indicators and read more analysis and commentary from the Association's economists.