Friday’s jobs report exceeded expectations, highlighting a labor market that seems healthier than what mainstream media portrays. In April, the U.S. saw a creation of 115,000 jobs, with the unemployment rate remaining steady at 4.3%.
This increase follows a series of positive labor market signals this week. ADP’s private payrolls rose by 109,000, largely thanks to small businesses. The latest JOLTS report indicated that hiring has surged, along with an uptick in employee resignations—this is often viewed as a sign that workers feel confident in seeking better opportunities. Additionally, jobless claims stayed low at a historically low 200,000.
Small businesses are really the driving force behind these job gains. According to U.S. Census data, new business formations are currently at record levels, approximately 20% above what was seen after the pandemic.
This boom can be traced back to the Republican tax cuts implemented last July, which facilitated the process for small businesses to start, grow, and hire. The Small Business Administration reported that around 12 million small firms benefited from an average tax cut exceeding $7,000.
Tax cuts aren’t the only help for Main Street. In 2025, the SBA guaranteed a record $45 billion in loans to 85,000 small businesses through local banks. Last year, the U.S. also garnered $18 trillion in investments, a stark contrast to just $1 trillion over four years during the Biden administration.
Additionally, the Trump administration has rolled back 129 regulations for every new regulation introduced.
While elevated inflation and high gas prices present challenges, job creators believe these pressures are genuinely temporary, differing significantly from what some term “Bidenflation.”
Media outlets suggest these job creation figures are unexpected surprises. However, they reflect an economy on Main Street thriving under conservative policies.
Furthermore, the media tends to compare job gains under Trump with those of Biden but often overlooks that, during Trump’s administration, millions of undocumented immigrants influenced job statistics. The Kansas City Fed estimates that the required monthly job growth to maintain a stable unemployment rate has dropped from about 150,000 to roughly 50,000 thanks to Trump’s immigration policies.
Also overlooked is the nature of the jobs created. Under Biden, 25% of jobs originated from less productive government roles. Meanwhile, all job growth under Trump came from the productive private sector—spurred by entrepreneurs and small businesses.
According to the latest job report, federal employment decreased yet again last month and is down by 11% since Trump took office, representing a significant achievement for limited government.
Republicans now have an opportunity to capitalize on this economic momentum by using their Congressional majority to push forward more pro-growth reforms. One critical reform is indexing capital gains taxes to inflation, which would protect small businesses, homeowners, investors, and retirees from taxes on gains that are merely a result of inflation. The Tax Foundation estimates that one-third of capital gains stem exclusively from inflation.
Addressing this issue could significantly mitigate the retirement savings crisis, enhancing the real value of brokerage accounts and real estate.
This seems like a logical next step for Republicans following last year’s Working Families Tax Cut and could be a major win for the GOP to present to voters as they approach campaign season.
