US Nonfarm Payroll Increases by 177,000 in April; Unemployment Steady at 4.2%

On Friday, the US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment increased by 177,000 in April, closely aligned with the average monthly gain of 152,000 over the prior 12 months.

Growth was led by the following sectors:

• Health care added 51,000 jobs, roughly matching its 12-month average of 52,000 per month.
• Transportation and warehousing increased by 29,000 jobs, following little movement in March (+3,000).
• Financial activities employment rose by 14,000. Since its low point in April 2024, the industry has added 103,000 jobs.
• Social assistance continued to trend upward, adding 8,000 positions, though this was below its 12-month average monthly gain of 20,000.

These gains were partially offset by losses in government employment. Federal government payrolls declined by 9,000 in April and are down 26,000 since January. The BLS notes that workers on paid leave or receiving severance are still counted as employed in the establishment survey.

Employment in most other major industries—including mining, construction, manufacturing, wholesale and retail trade, information, professional and business services, leisure and hospitality, and other services—showed little change in April.

The unemployment rate held steady at 4.2% and has remained in a narrow range of 4.0–4.2% since May 2024. The number of unemployed people was little changed at 7.2 million.

Monthly Revisions

Revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors.

The change in total nonfarm payroll employment for February was revised down by 15,000, from 117,000 to 102,000, and the change for March was revised down by 43,000, from 228,000 to 185,000. With these revisions, employment in February and March combined is 58,000 lower than previously reported.