U.S. Labor Market Defies Tariff Turbulence with Steady Job Growth

U.S. job growth decelerated in April, reflecting economic challenges amid President Trump's trade policies. Yet, with employers reticent to shed workers, the labor market displays resilience. Employment in sectors like healthcare and transportation grows, balancing declines elsewhere. Economists predict tariffs may impact job figures by summer.

In a noteworthy development, U.S. job growth experienced a slight slowdown in April, concurrent with President Donald Trump's protectionist trade policies, which are adding to economic uncertainty. The Labor Department's latest employment report, however, showed the unemployment rate steady at 4.2%, offering some assurance that recession fears may be premature.

Despite the instability, labor market resilience persists, allowing the Federal Reserve to maintain its key interest rates. According to Olu Sonola from Fitch Ratings, the 'R' word signifying this report is resilience, not recession. Still, caution is advised given the potential drag from trade policies on the broader economy.

Nonfarm payrolls saw a moderate increase of 177,000 jobs in April, slightly lower than expectations but still positive. Sectors like healthcare and transportation led the way, though declines in manufacturing and federal employment reflect ongoing challenges. Economists speculate the ramifications of tariffs could become more pronounced by summer.

(With inputs from agencies.)