U.S. added 115,000 jobs in April as economy contends with Iran war impact
The U.S. economy added 115,000 jobs in April, a sign that the labor market retained its resiliency even in the face of a global energy shock triggered by the U.S. war with Iran. The unemployment rate remained steady at 4.3%
Economists were expecting 55,000 jobs to be added and projected that the unemployment rate would remain steady at 4.3%, according to a survey from Dow Jones.
The report also showed significant revisions to prior months. Employment in February was revised down by 23,000 to negative 156,000, but March was revised up by 7,000 to an addition of 178,000 roles.
The report from the federal Bureau of Labor Statistics also arrives as oil prices remain higher by more than 50% since the start of the year and average retail gas prices hover above $4.55 per gallon, up 50% since the war with Iran started in late February.
After the Consumer Price Index showed inflation rising to 3.3% in March as a result of the Iran war fallout, Friday’s report showed that average hourly wages continued a strong 3.6% pace from the same time a year ago.
“The April jobs report is a clear upside surprise, showing the labor market remains resilient,” Citizens Financial co-head of global markets Eric Merlis said. “Importantly, the data suggests the hostilities in the Middle East have had little visible impact on the U.S. job market.”
“Stronger job growth alongside stable unemployment and contained wage pressure is exactly what the Fed wants to see,” he said.
In April, gains in the healthcare sector once again led overall job gains. The sector “added 37,000 jobs, in line with the average monthly gain of 32,000 over the prior 12 months,” BLS said.
The transportation and warehousing sectors also saw notable gains of 30,000 roles, and the retail industry gained 22,000 jobs.
The entire employment picture wasn’t as rosy, however.
“The number of people employed part time for economic reasons increased by 445,000 to 4.9 million in April,” the BLS said. “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.”
Jobs in the information technology sector also contracted by 13,000 roles.
“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,” the bureau said in a statement.
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