April Jobs Report: Tariff Uncertainty and Economic Cooling Ahead

By: coin central|2025/05/02 11:30:02
0
Share
copy
TLDR:Economists expect 135,000 nonfarm payrolls added in April, down from 228,000 in MarchUnemployment rate projected to hold steady at 4.2%Report is the first since Trump’s April 2 “Liberation Day” tariffs announcementRecent economic data shows signs of cooling, with GDP contraction in Q1Markets pricing 60% chance of Fed rate cut in JuneThe April jobs report, set for release Friday morning, is expected to show a slowdown in hiring amid growing economic uncertainty following President Trump’s tariff announcements. Economists anticipate the addition of 135,000 nonfarm payrolls, significantly lower than March’s 228,000 jobs, while the unemployment rate is projected to remain unchanged at 4.2%.This report marks the first major employment data since Trump’s “Liberation Day” tariffs were announced on April 2. Investors are closely watching for signs that the new trade policies might be cooling the labor market.Source: Yahoo FinanceThe Bureau of Labor Statistics will release the data at 8:30 a.m. ET on Friday. Wall Street consensus estimates compiled by Bloomberg expect nonfarm payrolls to rise by 135,000 in April, with unemployment holding at 4.2%.March saw the economy add 228,000 jobs. The unemployment rate for that month stood at 4.2%.Recent Economic IndicatorsOther economic indicators have already begun to show impacts from the tariff announcements. The Bureau of Economic Analysis recently reported that economic growth contracted for the first time in three years during the first quarter.A surge in imports ahead of the tariff implementation weighed on growth. The manufacturing sector has also shown negative effects from the tariffs in recent activity reports.Various consumer sentiment surveys have indicated downward pressure as a result of the trade policy changes. However, economists believe the April jobs report may not yet fully reflect these concerns.“Similar to March, solid April data may feel stale as it reflects labor market conditions during the first two weeks of the month, likely too soon to reflect employment decisions made after the April 2 tariff announcement,” wrote Citi economist Veronica Clark in a preview note.Some cooling signs have emerged in recent labor market data. Weekly claims for unemployment benefits reached their highest level in two months during the final full week of April.The number of Americans filing for ongoing unemployment insurance reached the highest level since November 2021. This follows weaker-than-expected private payroll additions reported on Wednesday.Job openings at the end of March hovered near their lowest level since December 2020, according to data released Tuesday. These indicators suggest potential softening in the labor market.Market Implications“Unease is the word of the day,” noted ADP chief economist Nela Richardson in the April private payroll release. “Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data. It can be difficult to make hiring decisions in such an environment.”The jobs report will likely influence Federal Reserve policy decisions. Markets are currently pricing in a 60% probability that the Fed will resume interest rate cuts at its June meeting, according to the CME FedWatch Tool.Average hourly earnings are expected to rise 0.3% month-over-month, matching March’s increase. Year-over-year, earnings are forecast to grow 3.9%, slightly above the 3.8% seen in March.The average weekly hours worked is projected to remain steady at 34.2 hours. These wage and hour metrics provide additional insight into labor market strength beyond the headline job numbers.The April report comes at a time when policymakers are carefully balancing concerns about economic growth with still-persistent inflation pressures. The labor market has been a key strength throughout recent economic uncertainty.Friday’s data will help clarify whether that strength is beginning to wane as new trade policies take effect and businesses adjust their hiring plans accordingly.The post April Jobs Report: Tariff Uncertainty and Economic Cooling Ahead appeared first on CoinCentral.

You may also like

WEEX P2P now supports BDT & LKR—Merchant Recruitment Now Open

To make crypto deposits easier, WEEX has officially launched its P2P trading platform and continues to expand fiat support. We're excited to announce that the Bangladeshi Taka (BDT) and Sri Lankan Rupee (LKR) are now available on WEEX P2P!

Morning News | SK Hynix officially launches the marketing promotion process for its U.S. stock listing; the Central Cyberspace Administration announces the results of the first phase of rectifying AI application chaos, with over 14,000 non-compliant pr...

July 6 Market Important Events Overview

Can Open USD support Stripe's ambitions?

Stripe collaborates with multiple parties to launch OUSD, not only challenging the dominance of USDC but also exposing its trillion-dollar ambition to transition from a "payment interface" to a "next-generation funds settlement network."

Blockchain Capital Partner: AI is rewriting the fundamental unit of labor

The rise of AI is rewriting the basic unit of labor from "positions" and "companies" to "tasks." When programmable labor meets programmable currency, a production line without companies, salary systems, or HR becomes possible for the first time.

The cryptocurrency industry has become a traditional industry

For entrepreneurs and retail investors still in this industry, they should either embrace the current changes or explore the next unpredictable field in cryptocurrency.

Chip frenzy cooling down? Morgan Stanley's Wilson: Funds are shifting towards AI supercomputing giants like Microsoft and Amazon

Morgan Stanley's chief equity strategist Wilson pointed out that the momentum in the semiconductor sector is waning, with the Philadelphia Semiconductor Index having dropped nearly 14% from its peak. Funds are shifting towards AI supercomputing giants like Microsoft, Amazon, and Meta, as well as sec...

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com