Employment Update: April Job Gains Moderate While Unemployment Holds Steady

Employment Update: April Job Gains Moderate While Unemployment Holds Steady

The U.S. economy added 177,000 jobs in April 2025, marking a continued, though slightly slower, expansion of the labor market. The unemployment rate remained unchanged at 4.2%, holding steady within the narrow range observed over the past year.

Key Highlights

According to the latest release from the U.S. Bureau of Labor Statistics (BLS), April’s job market remained on a steady footing, with employment growth occurring across key service-based sectors. However, a rise in long-term unemployment and downward revisions to previous months’ job gains signal a labor market that may be gradually cooling.

Here are some of the highlights:

• The unemployment rate held at 4.2%, with 7.2 million people unemployed.

• Long-term unemployment rose by 179,000 to 1.7 million, now accounting for 23.5% of all unemployed individuals.

• The labor force participation rate was unchanged at 62.6%, and the employment-population ratio held at 60.0%.

• Part-time employment for economic reasons remained stable at 4.7 million.

• The number of individuals not in the labor force but wanting a job was steady at 5.7 million.
  

Job Gains Concentrated in Services and Logistics

Employment continued to trend upward in healthcare, logistics, finance, and social services, while federal government job losses persisted. Other major industries, including construction, manufacturing, retail, and hospitality saw little or no change in April.

• Healthcare added 51,000 jobs, with notable increases in hospitals (+22,000) and ambulatory care (+21,000).
  

• Transportation and warehousing rose by 29,000 jobs, recovering from a flat March. Gains included warehousing (+10,000), couriers (+8,000), and air transportation (+3,000).
  

• Financial activities added 14,000 jobs, continuing a rebound from its low point in April 2024.
  

• Social assistance employment increased by 8,000, a slowdown from its 12-month average of +20,000.
  

• Federal government employment declined by 9,000, bringing the total federal job loss since January to 26,000.

Wages and Hours

• Average hourly earnings rose by 6 cents (0.2%) to $36.06, with annual wage growth steady at 3.8%.

• For production and nonsupervisory employees, hourly wages increased by 10 cents (0.3%) to $31.06.

• The average workweek for all employees remained at 34.3 hours, while manufacturing hours edged down to 40.0 hours.

Revisions and Caution Flags

The BLS revised job gains for February and March downward by a combined 58,000 jobs. February’s total was lowered to +102,000, and March was revised from +228,000 to +185,000. These adjustments highlight a potential plateau in hiring momentum.

Looking Ahead: Stability Meets Softening Signals

The April report reflects a labor market that remains resilient, with continued growth in critical sectors. However, the rise in long-term unemployment, slower job additions in social services, and downward revisions to prior months suggest that underlying labor market momentum may be softening.

Additionally, federal job cuts now totaling over 26,000 since the beginning of the year could contribute to more noticeable shifts in public sector employment in the months ahead. While wages are still rising, employers may face increasing pressure to balance workforce expansion with broader economic uncertainty.