April 2025 Jobs Report: Strong Growth, Wage Slowdown

April 2025 Jobs Report Shows Strong Gains, But Wage Growth Cools

Washington, D.C. – May 2, 2025

The U.S. labor market continued its steady expansion in April, adding 253,000 jobs while the unemployment rate held steady at 3.5%, according to the latest report from the Bureau of Labor Statistics (BLS). The figures surpassed economists’ expectations of 200,000 new jobs, signaling resilience in the economy despite higher interest rates and global economic uncertainties.

Key Highlights from the Report:

Healthcare, Construction, and Green Energy Lead Hiring: The healthcare sector added 62,000 jobs, while construction employment rose by 38,000, reflecting ongoing infrastructure investments. Renewable energy firms also saw a surge, adding 25,000 jobs as federal clean energy incentives continue to drive growth.

Retail and Hospitality Slow: After months of strong post-pandemic recovery, retail hiring stalled ( 12,000), and hospitality gains were modest ( 18,000), suggesting consumer spending may be shifting.

Wage Growth Eases: Average hourly earnings rose 0.2% month-over-month, the smallest increase since late 2023, and year-over-year wage growth slowed to 3.8%—down from 4.1% in March. Analysts say this could ease inflation concerns at the Federal Reserve.

Market and Political Reactions:

Stock markets opened slightly higher following the report, with investors optimistic about sustained economic growth without overheating. Treasury yields dipped as traders scaled back bets on additional Fed rate hikes.

President Jane Mitchell hailed the report as proof that her administration’s economic policies are working, stating, 'America’s workers are driving our recovery, and we’re ensuring that growth is broad-based.' Meanwhile, critics pointed to the cooling wage growth as a sign that workers are still struggling with high living costs.

What’s Next?

With inflation now closer to the Fed’s 2% target, policymakers may consider rate cuts later this year if hiring momentum slows further. Economists will be watching May’s data closely for signs of whether the labor market is stabilizing or beginning to weaken.

— Reporting by [Your News Outlet]

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