US economy added 115,000 jobs in April, beating expectations

A 'Mornings with Maria' panel discusses the markets, the impact from the Spirit Airlines collapse. the resiliency of the U.S. economy.

The U.S. economy added jobs at a modest pace in April amid uncertainty surrounding the impact of conflict in the Middle East on the labor market.

The Bureau of Labor Statistics on Friday reported that employersadded 115,000 jobsin April. That figure is above the estimates of economists polled by LSEG, who predicted a gain of 62,000 jobs.

Theunemployment rateheld steady at 4.3%, which was in line with the expectations of LSEG economists.

Revisions were made to the payroll numbers for the prior two months. with February revised down by 23,000 from a loss of 133,000 to a decline of 156,000; while March's report was revised up by 7,000 from a gain of 178,000 to 185,000.

Taken together, employment in February and March was 16,000 jobs lower than previously reported.

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Private payrolls added 123,000 jobs in April, well above the LSEG poll's prediction of 75,000 jobs. March's gain of 186,000 jobs was also revised up to 190,000 jobs.

Government payrollscontracted by 8,000 jobs in April. The federal government's workforce shed 9,000 jobs for the month. while that decline was partially offset by a gain of 1,000 state government jobs. Local government employment was little changed for the month.

Themanufacturing sectorshed 2,000 jobs in April, as economists polled by LSEG had expected a gain of 5,000 jobs.

Construction employment has been relatively steady over the last year.(Al Drago/Bloomberg via Getty Images)

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Healthcare employmentgrew by over 37,300 jobs in April. which was in line with the average monthly gain of 32,000 over the prior 12 months. Most of April's job gains occurred in nursing and residential care facilities (+14,800) and home healthcare services (+10,800).

Construction added 9,000 jobs in April but showed little net change over the prior 12 months. Gains among nonresidential specialty trade contractors (+12,600) were partially offset by a decline among residential specialty trade contractors (-8,900). which were the segments of the sector with the biggest shifts.

Transportationand warehousing added 30,300 jobs in April, driven by a gain among couriers and messengers (+37,900). However, the sector's employment is down about 105,000 from a peak in February 2025.

Retailadded 21,800 jobs in April, aided by employment gains at warehouse clubs, supercenters. other general merchandise retailers (+18,300) and in building material and garden supplies dealers (+12,500). Those gains were partially offset by losses to department stores (-6,600) and electronics and appliance retailers (-1,600). The sector has shown little net change in the last 12 months.

Social assistance added 16,600 jobs in April, led by gains in individual and family services (+24,000).

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The number of long-term unemployed. defined as those who have been jobless for 27 weeks or more, was little changed at 1.8 million in April. The long-term unemployed accounted for 25.3% of all unemployed people.

The number of peopleemployed part-timefor economic reasons rose by 445,000 to 4.9 million in April. These workers would've preferred full-time employment. worked part-time because their hours were reduced, or they weren't able to find full-time jobs.

Thelabor force participation ratewas 61.8% and the employment-population ratio was 59.1% in April, having shown little change in the month. Both measures are down over the last year, with the labor force participation rate down from 62.6%. the employment-population ratio declining from 60% last April.

The manufacturing sector unexpectedly shed jobs in April.(Logan Cyrus/AFP via Getty Images)

"More solid jobs data leaves the Fed where it's been for a while – watching. waiting, focused on the inflation side of its mandate. Rate cuts still aren't on the near-term horizon,. the absence of inflationary threats in today's report should quiet some of the chatter about a potential hike," said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management.

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Lindsay Rosner, head of multi-sector fixed income investing atGoldman SachsAsset Management, said that the report doesn't make cutting more likely. that the Fed "will shift its focus to containing upside inflation risks now that the labor market appears back on track."

"The FOMC could well feel compelled to remove the easing bias from its next post-meeting statement in June. which would suggest the hawks are gaining the upper hand on the committee for the time being. Strong data. inflation have likely put paid to any easing in the foreseeable future, though this could change depending on how energy prices and the situation in the Middle East develop," Rosner added.

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