U.S. Adds 115,000 Jobs in April, Beating Forecasts as Inflation Eats Into Wages

TLDR

• The U.S. added 115,000 jobs in April, nearly double the 65,000 forecast
• Unemployment held steady at 4.3%
• Health care led gains with ~54,000 jobs; transportation added 30,000+
• Wages rose just 3.6% year-over-year, below the ~4% inflation rate
• The Fed is watching inflation from rising oil prices, not the jobs market

The U.S. labor market added 115,000 jobs in April, the Bureau of Labor Statistics reported Friday. That was well above the median forecast of 65,000 jobs from economists surveyed by Bloomberg.

The unemployment rate stayed flat at 4.3%. Stock futures added to gains after the report was published.

March’s payroll figure was revised up to 185,000 from 178,000. February’s number was revised down to a loss of 156,000 positions, a swing of 23,000 jobs.

Health care and social assistance led April’s gains, adding close to 54,000 roles. That is above the sector’s 12-month average of 32,000 jobs per month.

Transportation and warehousing added more than 30,000 jobs. Couriers and messengers drove much of that growth. Retail trade added 22,000 jobs.

Not all sectors gained. Information employment fell by 13,000 jobs. That sector is now down 342,000 positions from its peak in November 2022. Financial activities also shed 11,000 jobs. Federal government employment dropped by 9,000.

Private employers added 109,000 jobs in April, according to ADP data released earlier in the week. That was the fastest monthly gain since January 2025.

Wages Losing Ground to Inflation

Average hourly earnings rose 3.6% year-over-year in April. Monthly wage growth came in at 0.2%, softer than the expected 0.3%.

Long pointed to the ongoing U.S.-Israel conflict with Iran as a driver of higher oil prices, which has pushed up headline inflation since late February.

Dan Alpert, executive chairman at Westwood Capital, noted that net growth in higher-paying job sectors was negative in April.

The Fed’s Position

Powell added that the Fed does not currently view the labor market as a source of inflation pressure. The Fed is focused on the inflationary impact of rising oil prices.

Before Friday’s report, some traders had priced in a small chance of rate hikes this year. Those odds dropped after the jobs data was released, according to the CME FedWatch tool.

Over the past three months, the U.S. has averaged 48,000 new jobs per month when accounting for revisions.

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