File photo: An appointment sign for sales professionals is displayed at a store in the US (Image credit: AP)
US employers added a more than expected 115,000 jobs in April despite economic uncertainty caused by the Iran war, according to data released by the US Labor Department on Friday.The unemployment rate remained unchanged at 4.3 percent, compared with economists’ expectation of 65,000 new jobs, though that slowed from a revised 185,000 jobs added in March.The latest data shows the US labor market remains resilient, even as conflict in West Asia has disrupted global oil supplies and average US gasoline prices rose above $4.50 a gallon this week.“The labor market is not booming, but breaking it is proving to be more difficult than many feared,” Olu Sonola, head of US economics at Fitch Ratings, was quoted as saying by news agency AP.
Healthcare, transport sectors are ahead in hiring
Healthcare companies added 37,000 jobs in April, while transportation and warehousing firms added 30,000 jobs, according to the report.However, manufacturers cut 2,000 jobs during the month and 66,000 jobs over the past year, despite President Donald Trump’s protectionist trade policies aimed at boosting factory employment.Average hourly earnings rose 0.2 percent from March and 3.6 percent year-over-year, roughly in line with the Federal Reserve’s inflation target.The labor force participation rate fell to 61.8 percent, its lowest level since October 2021, as retirements and stricter immigration policies reduced the number of people seeking work.
Concerns remain about Iran war and inflation
Economists said the economy has so far weathered the impact of the Iran conflict better than expected, although risks remain if high energy prices persist.“Businesses are to some extent viewing the conflict in Iran as temporary,” PNC chief economist Gus Faucher told the AP. “We’re seeing solid growth in consumer spending. And we’re seeing strong business investment, particularly around technology and AI.”However, Faucher warned that “the longer the conflict in Iran continues, the higher energy prices will be; the longer they remain high, the greater the pressure on the economy.”The Iran war increasingly disrupted shipping through the Strait of Hormuz after Iran closed the vital route following US-Israeli strikes on February 28. The move sent oil prices soaring and raised fears of slowing global economic growth.
Fed likely to keep rates steady
The stronger-than-expected jobs report is also expected to ease pressure on the Federal Reserve to cut interest rates soon.Inflation rose to 3.3 percent in March, its highest level in two years, mainly due to rising fuel prices.“Friday’s employment data really makes it less likely that we’ll see a rate cut any time soon,” Faucher said. He said the Fed may prefer to focus on getting inflation back toward its 2 percent target before reducing borrowing costs.