In April, U.S. nonfarm institutional sector jobs increased by more than 110,000 from the previous month. The figure nearly doubled economists' estimates, showing a solid labor market for a second straight month despite concerns that the war between the United States and Iran could slow the economy.
The U.S. Department of Labor's Bureau of Labor Statistics said on the 8th (local time) that nonfarm jobs in April rose by 115,000 from the previous month. That fell short of the 185,000 increase in March, but far exceeded the 55,000 expected by experts polled by Dow Jones.
By industry, the healthcare institutional sector led April hiring with an increase of 37,000. The gain in healthcare institutional sector jobs outpaced the recent 12-month average increase of 32,000. Transportation and warehousing (30,000), retail transactions (22,000), and social assistance (17,000) institutional sectors also contributed to April job growth.
In contrast, federal government jobs fell by 9,000. The Labor Department said that, due to workforce reductions at the Department of Government Efficiency, the number of federal jobs declined by 348,000 compared with the peak in Oct. 2024.
The unemployment rate came in at 4.3%. It was unchanged from a month earlier and matched economists' expectations. The labor force participation rate was 61.8%, down slightly from 61.9% the previous month. Wage growth also missed expectations. Average hourly earnings in April rose 0.2% from the prior month, below the market forecast of 0.3%. They rose 3.6% from a year earlier, also below the market outlook of 3.8%.
Earlier in the United States, jobs fell sharply in February, raising concerns about a weakening labor market. But with labor conditions improving for two straight months in March and April, worries about job losses due to the U.S.-Iran war are expected to ease.