U.S. Job Market Resilience Amidst Trade Policy Uncertainty

U.S. job growth slowed in April amid economic uncertainty due to President Trump's trade policies. The labor market remains resilient with unemployment steady at 4.2%. However, skepticism looms as economists predict potential negative impacts, especially in manufacturing and government employment sectors. Healthcare, transportation, and warehousing led job gains.

Despite a slowdown in U.S. job growth in April, the labor market remains resilient amidst an uncertain economic landscape shaped by President Donald Trump's protectionist trade policies. The Labor Department's latest employment report indicates that the unemployment rate held steady at 4.2%, easing fears of an impending recession despite GDP contraction in the first quarter.

While the Federal Reserve prepares to maintain interest rates, the labor market showcases strength with healthcare and transportation sectors driving job growth. However, the outlook is clouded as manufacturing and government employment face headwinds from trade tariffs, sparking fears of potential economic strain.

Struggles in securing clarity on trade policies intensify uncertainties, as seen with declines in manufacturing jobs and anticipated federal payroll reduction. Economists foresee potential challenges ahead, with impacts possibly evident in future employment and inflation reports. Meanwhile, average hourly earnings showed a modest increase, supporting consumer spending for now.

(With inputs from agencies.)