US adds 115,000 jobs in April, unemployment rate at 4.3% amid Iran-linked energy disruption

The US economy created 115,000 jobs in April, highlighting that the labour market remained relatively resilient despite the global energy disruption caused by the US-Iran war. Meanwhile, the unemployment rate held steady at 4.3%, according to data released on Friday (local time).

The report from the Bureau of Labor Statistics comes at a time when the oil prices continue to be higher by more than 50% since the start of the year, with the average retail gas prices hovering above $4.55 per gallon, up 50% since the war with Iran started in late February.

April jobs data a surprise: Experts

Citing a survey from Dow Jones, NBC News reported that economists expected at least 55,000 jobs to be added and projected that the unemployment rate would remain at 4.3%.

Additionally, the report also showed notable revisions to previous months' jobs data. February employment figures were revised down by 23,000 to a loss of 156,000 jobs, while March figures were revised up by 7,000 to a gain of 178,000 jobs.

Citizens Financial co-head of global markets Eric Merlis told NBC, "The April jobs report is a clear upside surprise, showing the labour market remains resilient," and added, "Importantly, the data suggests the hostilities in the Middle East have had little visible impact on the US job market.”

The expert further said, "Stronger job growth alongside stable unemployment and contained wage pressure is exactly what the Fed wants to see."

Which sector witnessed major job gains?

The report showed that the healthcare sector once again led overall job gains in April, adding 37,000 jobs, in line with the average monthly gain of 32,000 over the previous 12 months.

Notable gains of 30,000 roles were seen in the transportation and warehousing sectors, whereas the retail industry gained at least 22,000 jobs. The information technology sector also saw job losses, shedding 13,000 positions in April.

Federal government employment continued to decline in April, falling by 9,000 jobs. Since peaking in October 2024, federal government employment has dropped by 348,000 jobs, or 11.5%. Federal employees on furlough during the partial government shutdown were still counted as employed in the establishment survey because they worked, received, or were expected to receive pay during the pay period that included the 12th of the month.

According to the BLS, the entire employment picture wasn't as rosy. The total number of part-time workers increased by 445,000 to 4.9 million in April. "These individuals would have preferred full-time employment but were working part-time because their hours had been reduced or they were unable to find full-time jobs," the BLS said.

A statement from the Bureau of Labor Statistics read, "Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; financial activities; professional and business services; leisure and hospitality; and other services."

Hourly wages continue at strong pace

In April, average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents, or 0.2%, to $37.41. Over the year, average hourly earnings have increased by 3.6%. In April, the average hourly earnings of private-sector production and nonsupervisory employees rose by 11 cents, or 0.3%, to $32.23. This is despite the Consumer Price Index (CPI) inflation rising 3.3% in March as a result of the Iran war fallout.