In April, the U.S. non-farm payrolls increased by 177,000, significantly better than expected, the unemployment rate remained stable, and wage growth slowed

In April, the non-farm employment population in the United States increased by 177,000, better than expected, while the data for the previous two months was revised down. The unemployment rate remained at 4.2%, in line with expectations. The data indicates that despite the turbulence caused by President Trump's tariff policy announced in early April, the significant non-farm employment data for April still exceeded expectations, showing that the labor market remains robust.

Key Points of April Non-Farm Data

On Friday, May 2, the U.S. Bureau of Labor Statistics reported:

After seasonal adjustment, the U.S. non-farm employment population increased by 177,000 in April, with an expectation of 138,000.

The previous value for March was revised down from 228,000 to 185,000. The increase in non-farm jobs for February was also revised down by 15,000, from the previous 117,000 to 102,000. The total number of jobs for February and March was 58,000 less than previously reported.

Over the past six months, the U.S. economy has added an average of 193,167 jobs per month.

The employment growth in April was widespread and generally increased. The healthcare sector led again, adding 51,000 jobs. The transportation and warehousing sector saw an increase of 29,000 jobs, the largest since December of last year, indicating that a surge in imports and increased economic activity have driven demand for labor, with companies accelerating actions to respond to the impending tariffs. The financial activities sector added 14,000 jobs.

However, at the same time, the manufacturing sector lost some jobs, with the industry's output experiencing the most severe contraction since 2020. In April, manufacturing employment in the U.S. decreased by 1,000, with an expectation of a decrease of 5,000, while the previous value was an increase of 1,000.

The federal government reported a decrease of 9,000 jobs this month. The U.S. federal government has laid off employees for the third consecutive month, marking the longest duration since 2022, reflecting efforts by the "Department of Government Efficiency" (DOGE) led by Elon Musk to reduce the number of federal employees and cut government spending.

According to a report released by the career transition company Challenger, Gray & Christmas on Thursday, the number of layoffs in the U.S. government sector in 2025 is the highest nationwide, with approximately 282,000 layoffs to date, the vast majority of which are related to DOGE's actions. Economists expect that as federal spending cuts affect contractors, universities, and other institutions reliant on government funding, at least 500,000 jobs in the U.S. may be impacted.

In April, the change in private sector employment in the U.S. increased by 167,000, with an expectation of 125,000, and the previous value was 209,000 The household survey used to calculate the unemployment rate shows a stronger increase in employment, with a significant rise of 436,000 in April.

The unemployment rate in the U.S. for April is 4.2%, unchanged from expectations and the previous value of 4.2%. The broader unemployment rate, which includes discouraged workers and those working part-time for economic reasons, slightly decreased to 7.8%.

The market is closely watching the impact of labor supply and demand on wage growth, especially against the backdrop of renewed inflation risks. The report indicates that wage growth cooled in April. In April, the average hourly wage in the U.S. increased by 3.8% year-on-year, the lowest since July 2024, with expectations of 3.9% and a previous value of 3.8%; the average hourly wage increased by 0.2% month-on-month, with expectations of a 0.3% increase and a previous value of 0.3%.

The average weekly hours worked in the U.S. in April were 34.3 hours, with expectations of 34.2 hours and a previous value of 34.2 hours.

The labor force participation rate in the U.S. for April, which is the proportion of the population that is employed or actively seeking work, rose to 62.6%, higher than the expected 62.5% and the previous value of 62.5%. The participation rate for the "prime age" group of 25 to 54 years old reached its highest level in seven months.

In April, full-time employment increased by 305,000, while part-time employment rose by 56,000. This marks a long-awaited return to "normalization," characterized by employment growth led by full-time labor.

Analysis and Commentary

Media analysis states that the strong employment growth in April and stable unemployment rate in the U.S. indicate that the uncertainty surrounding Trump's trade policies has not yet had a substantial impact on hiring plans. Despite escalating tariffs and uncertainty in the financial markets, companies have not significantly adjusted their hiring plans. Nevertheless, the U.S. labor market still shows signs of gradual cooling. Most economists expect the main effects of punitive tariffs to become apparent in the coming months.

The "New Federal Reserve News Agency" commented that the non-farm data reduces the likelihood of a rate cut in June. Federal Reserve officials generally indicate that a clear sign of rising unemployment may be needed for a rate cut. Since the April employment report showed little indication of a widespread decline in job positions, Federal Reserve officials are likely to maintain a wait-and-see attitude at next week's policy meeting, including making almost no statements suggesting readiness to cut rates at the mid-June meeting Federal Reserve officials previously stated that they would not rush to cut interest rates until they have a clearer understanding of the impact of U.S. government policies on the economy, and they are expected to keep rates unchanged at the FOMC meeting on May 6-7.

Although the Federal Reserve is an independent institution, Trump has been pressuring it to lower borrowing costs. After the release of the non-farm payroll report, U.S. President Trump once again called on the Federal Reserve to cut interest rates:

Consumers have been waiting for prices to drop for years. Without inflation, the Federal Reserve should lower interest rates!!!

Recent data has shown a more pronounced deterioration in the U.S. labor market. Job vacancies in March fell to the lowest level since last September, and the number of new jobs added in the private sector in April was the lowest in nine months.

Economists generally expect layoffs to increase in the coming months as economic uncertainty causes companies to pause expansion plans. For example, UPS expects to lay off 20,000 workers due to anticipated weakening demand for online shopping, and companies like Volvo Group and Cleveland-Cliffs are also cutting staff.

Market Reaction

After the release of U.S. non-farm payroll and other data, European and American stock markets and U.S. Treasury yields rose sharply, while the dollar's decline narrowed:

• Nasdaq futures rose by 0.76%, S&P 500 futures rose by 0.85%, and Dow futures rose by 0.85%. European stocks strengthened, with the Stoxx Europe 600 index's gain widening to 1.3%.
• The 10-year U.S. Treasury yield rose by more than 4 basis points during the day, reporting at 4.271%.
• The dollar index's decline narrowed to 0.24%.

After the release of the U.S. non-farm payroll data, traders still expect the Federal Reserve to cut interest rates nearly four times this year, with the current expectation for a total cut of about 85 basis points, compared to the pre-report expectation of about 90 basis points