Business
U.S. Job Growth Slows Amid Economic Uncertainty and Tariffs
WASHINGTON, April 30 (Reuters) – U.S. private payrolls growth slowed in April, reflecting increased economic uncertainty brought on by recent tariffs announced by President Donald Trump. The ADP National Employment Report, released Wednesday, showed only 62,000 jobs added in April, significantly lower than the forecast of 115,000.
The report indicated that the slowdown comes after a downwardly adjusted 147,000 jobs added in March. Economists are now bracing for the Bureau of Labor Statistics to confirm these trends when it releases the official jobs report on Friday.
Forecasts suggest total nonfarm payrolls rose by about 130,000 in April, down from 228,000 in March, with the unemployment rate expected to remain unchanged at 4.2%. Analysts attribute this decrease to heightened caution among businesses regarding hiring amid ongoing trade tensions.
“Businesses are in a holding pattern as they assess the impact of tariffs on supply chains and consumer spending,” said Robert Frick, corporate economist at Navy Federal Credit Union. “The uncertainty has made organizations hesitant to expand their workforces.”
According to Matthew Weller, global head of research at Forex.com, the true effects of the tariffs have yet to be fully realized. “We are starting to see signs like slowing port shipments and stalled hiring,” he noted.
While sectors like government, health care, and hospitality have historically led job growth, they are now facing new challenges due to federal spending cuts and potential labor shortages from immigration policies. The leisure and hospitality sectors are seeing impacts as discretionary spending slows.
Despite the concerns, some firms continue to announce hiring plans. On Thursday, Kimberly-Clark revealed a $2 billion investment to create 900 new jobs. Such announcements suggest underlying demand in certain sectors remains strong.
The upcoming jobs report is critical, especially with broader implications for the economy and consumer confidence. With experts warning of a potential slowdown, many are watching closely for the Friday data release.
