US added 115,000 jobs in April in surprise gain amid Iran war uncertainty

• Job gains were concentrated in healthcare, transportation, warehousing, retail and social assistance (106,000 combined), while federal government employment has declined by 348,000 since November 2024
• Previous months' data were revised: March 2025 now shows 185,000 jobs added (exceeding expectations), but February saw a deeper loss of 156,000 jobs (revised from initial estimate of 92,000)
• The Federal Reserve kept rates steady in late April citing slow job growth, elevated inflation and Middle East uncertainty, with implications for housing affordability as mortgage rates remain high

Summary: US Jobs Report April 2025

Key Figures:

• The U.S. economy added 115,000 jobs in April, significantly exceeding economist expectations of approximately 55,000 new jobs
• Unemployment held steady at 4.3%
• Weekly unemployment claims reached 200,000, a slight increase from the prior week

Job Growth by Sector:

Healthcare, transportation and warehousing, retail, and social assistance led gains, adding 106,000 jobs combined. Private employers contributed 109,000 jobs, the largest increase since January 2025.

Job Losses:

Federal government employment declined 348,000 positions since November 2024. The information sector and professional industries (down 8,000 jobs) also experienced losses.

Revisions:

March employment was revised upward to 185,000 jobs added, far exceeding initial expectations. February saw a deeper-than-reported contraction of 156,000 jobs lost (previously reported as 92,000).

Market Context:

Multiple destabilizing factors are impacting the labor market: tariffs, government layoffs, immigration policy changes, and rising oil prices driven by the ongoing U.S.-Israel war with Iran. The Federal Reserve kept interest rates steady in late April, citing slow job growth, elevated inflation, and Middle East uncertainty.

Market Implications:

The stronger-than-expected job growth may help the Fed avoid rate hikes, which would benefit mortgage rates and housing affordability. ADP economist Dr. Nela Richardson noted that small and large employers are hiring, while mid-sized companies show weakness, highlighting adaptability advantages in the current complex environment.