Strong Report Buoys Markets
Tom Howell Jr. | May 2, 2025
(The Washington Times) — The U.S. added 177,000 in April and the unemployment rate was unchanged at 4.2%, the government said in a stronger-than-expected report.
The employment increase was slightly below the revised total of 185,000 in March but beat forecasts that were closer to 130,000.
Economists had braced for a low number on Friday due to uncertainty around President Trump’s tariff plan and declining consumer sentiment and gross domestic product to start the year.
However, the jobs situation remained robust, causing Dow Futures to rise.
The Bureau of Labor Statistics reported employment increases in health care, transportation and warehousing, financial activities and social assistance.
Federal government employment declined by 9,000 jobs in April as Elon Musk and his Department of Government Efficiency slash spending and payroll.
The DOGE effort had been a major feature of Mr. Trump’s first 100 days alongside his aggressive trade tactics. He shook the markets by imposing a 10% tariff on imports and threatening heftier levies on countries that sell a plenty of products to Americans but don’t buy nearly as much from U.S. producers. A trade war with China resulted in 100% tariffs imposed by both sides.
Mr. Trump interpreted the labor report as proof that Americans must adapt to his aggressive policies for a period before seeing big gains.
“Energy down, mortgage rates down, employment strong, and much more good news, as Billions of Dollars pour in from Tariffs,” he wrote on Truth Social. “Just like I said, and we’re only in a TRANSITION STAGE, just getting started!!! Consumers have been waiting for years to see pricing come down. NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!”
Democrats said the overall picture was nothing to cheer. They said Mr. Trump inherited a growing economy and threw many indicators in reverse.
“Prices remain high, the economy is shrinking, and families are watching their savings vanish,” Rep. Brendan Boyle, Pennsylvania Democrat and ranking member of the House Budget Committee, said. “This isn’t bad luck. It’s the direct result of one man’s reckless decisions — and if he doesn’t change course, it will cost Americans their jobs. Instead of addressing the crisis he’s created.”
