U.S. employers added 175,000 jobs in April, the Bureau of Labor Statistics reported, slightly below the consensus estimate of 185,000 and a meaningful step down from the 240,000 average pace of the prior three months. The unemployment rate ticked up one-tenth to 4.1%, its highest level since November 2021, while average hourly earnings rose 0.2% — bringing year-over-year wage growth to 3.9%.
Healthcare once again led the gains, adding 56,000 positions across hospitals, ambulatory care, and nursing facilities. The sector has now added an average of 60,000 jobs per month for the past year and accounts for roughly a third of all net hiring since early 2024. Leisure and hospitality added 17,000, government added 8,000 (entirely at the state and local level), and construction added 9,000.
Manufacturing was the notable weak spot, shedding 8,000 jobs for the second consecutive month. Within the sector, motor vehicle and parts manufacturing lost 4,000 positions, fabricated metals lost 2,500, and machinery lost 1,800. The ISM manufacturing PMI fell to 48.7 the same week, confirming that factory activity is contracting after a brief expansion in the first quarter.
Retail trade was essentially flat, with department stores losing 3,000 jobs offset by gains at warehouse clubs and supercenters. Information lost 4,000 jobs, with motion picture and sound recording down 2,000 — likely reflecting continued AI-driven restructuring across media and tech. Professional and business services added a modest 22,000, well below its 2024 average of 45,000.
The household survey told a slightly more cautious story. The labor force participation rate held at 62.7%, but the employment-population ratio fell to 60.0% from 60.1%. The number of people working part-time for economic reasons rose by 102,000 to 4.4 million, and the U-6 underemployment rate climbed to 7.5% — its highest level since late 2021.
Wage growth, while still outpacing inflation, has clearly decelerated. Average hourly earnings for production and nonsupervisory workers rose 4.0% year over year, down from a peak of 6.7% in early 2022. Wage gains have been concentrated in healthcare, construction, and leisure — sectors with persistent labor shortages — while wages in finance, information, and professional services have grown closer to 3%.
Revisions to the prior two months trimmed 22,000 jobs from the initial estimates, a reminder that the early reads on payrolls have been consistently revised downward over the past year as the BLS incorporates more complete unemployment insurance records. Economists at Bank of America noted that if the revisions pattern continues, the true underlying pace of hiring is probably closer to 150,000 per month.
For policymakers, the report keeps the door open to a midyear rate cut without forcing one. For job seekers, the message is that hiring is still happening — just more selectively, in fewer industries, and with employers feeling less urgency to chase candidates with above-market offers.