The United States economy added 115,000 jobs in April, marking the first back-to-back monthly increase in employment in nearly a year, according to new data released by the Bureau of Labor Statistics. The unemployment rate remained unchanged at 4.3 percent, suggesting that the labour market is showing signs of stabilisation after experiencing near-zero job growth during much of the previous year.

The latest figures exceeded expectations from economists surveyed by Bloomberg, who had projected an increase of around 65,000 jobs for the month. The report indicated that hiring momentum was supported by continued resilience in consumer spending and business investment, aided in part by tax cuts and steady economic activity. Despite concerns surrounding geopolitical tensions and inflationary pressures, employers continued to expand payrolls across several sectors.

Hiring gains in April were led by healthcare, transportation and warehousing, as well as retail trade. Construction and leisure-related industries also recorded employment growth for a second consecutive month after severe winter weather had previously disrupted hiring activity earlier in the year. Analysts said increased investment in data-centre infrastructure may also be contributing to stronger demand for construction workers despite ongoing weakness in the housing sector due to elevated interest rates.

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At the same time, some sectors continued to face pressure. Employment in the information sector declined for a sixteenth consecutive month as major technology firms, including Meta Platforms and Microsoft, reportedly continued workforce reductions amid rising artificial intelligence investments and broader cost-cutting measures. Manufacturing employment also posted a slight decline during the month, reflecting softer industrial demand.

The report is likely to reinforce expectations that the Federal Reserve will keep interest rates unchanged in the near term while monitoring inflation risks linked to the ongoing conflict involving Iran. Federal Reserve Chair Jerome Powell recently stated that the labour market was showing increasing signs of stability. Financial markets reacted positively to the report, with stock-index futures holding gains while Treasury yields and the US dollar weakened.

However, some underlying indicators pointed to lingering weakness beneath the headline payroll growth. The labour force participation rate fell to 61.8 percent, its lowest level since October 2021, while a broader measure of unemployment climbed to 8.2 percent, the highest level recorded this year. Average hourly earnings rose 0.2 percent from March and 3.6 percent from a year earlier, while average weekly hours worked also increased slightly, providing some support to household incomes amid persistent inflation concerns.

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