OAN Staff James Meyers
9:46am – Friday, May 2, 2025
The latest employment report for April indicates that the US economy added 177,000 jobs last month, which surprisingly exceeded analysts’ predictions—likely due to concerns over tariffs.
As for the unemployment rate, it remained steady at 4.2%, according to figures released on Friday.
A survey by Bloomberg had led economists to forecast a drop in job growth, estimating only 138,000 new jobs as businesses expected to pull back amidst the tariff issues.
“Today’s report is a pleasant surprise, showing a resilient labor market where employers persist in expanding their workforce despite economic uncertainty,” stated Ger Doyle, the US country manager for Manpowergroup, in a memo.
“Yet, there are still cracks showing in the foundation, with fewer job openings than we saw in 2024,” he added.
The employment report also highlighted significant layoffs related to Elon Musk’s Doge division, which has led to employment suspensions across several agencies.
On the broader economic front, Wall Street has felt the pinch from President Trump’s tariff trade war, dealing with a lot of market instability.
Reacting to the employment figures, stock market futures tied to the Dow Jones rose by 0.9% after the report was published.
“We’ve already seen how financial markets might respond if the administration follows through with its initial tariff plans. So unless there’s a shift in July when the 90-day suspension runs out, we could expect similar market behaviors as in early April,” he noted.
In light of these developments, the Federal Reserve is closely monitoring the April employment report, aiming for a “wait-and-see” approach regarding policy decisions.
Expectations suggest interest rates will remain unchanged following this unexpectedly strong job data.
The decision on interest rates is set for May 7th, and according to CME FedWatch, the likelihood of no change has surged to 98%.
Please share your thoughts with us! Get breaking news and updates delivered directly to your inbox for free. Subscribe here. https://www.oann.com/alerts
Share this post!
