Tariffs Spark Controversy as U.S. Labor Market Posts Mixed Job Gains

WASHINGTON (AP) — U.S. employers added a surprising 228,000 jobs in March, signaling resilience in the American labor market amidst President Donald Trump‘s ongoing trade wars and immigration policies. Despite this job growth, the unemployment rate nudged up to 4.2% as concerns about economic stability rise.

The number of jobs added last month marked an increase from 117,000 in February and well exceeded the expected 130,000, according to the Labor Department. This shift comes at a tumultuous time for the economy, as Americans face uncertainties due to the president’s trade policies, particularly the new ‘Liberation Day’ import taxes announced recently.

Experts warn that Trump’s tariffs threaten to elevate prices and disrupt international commerce, potentially leading to retaliatory measures from trading partners. “The consequences of these tariffs are expected to ripple through various sectors of the economy, causing more than just localized job loss,” said Shruti Mishra, an economist at Bank of America.

As the job market shows signs of cooling, the added labor market pressure is attributed to changes in policy, including deportations of undocumented workers who have been integral in alleviating labor shortages. Analysts express concern that such actions could lead to reduced hiring or increased wages, generating inflationary pressures on consumers.

Employers have continued creating jobs but the pace has slowed significantly compared to the high numbers of 2021 and 2022, which saw average monthly gains of over 300,000. Last year’s monthly average settled at around 168,000, showing a clear dip from previous highs.

The economic climate has been affected by rising interest rates, with the Federal Reserve increasing the benchmark rate to combat inflation. In recent months, inflation rates have started to decline, allowing a brief respite with rate cuts, but it appears that the economic recovery remains fragile.

The University of Michigan‘s consumer sentiment survey revealed that two-thirds of Americans are bracing for possible unemployment increases over the next year, reflecting the growing anxiety regarding the economic future. “The current state of the economy looks solid, but the trade war could swing the U.S. into a recession,” stated Ershang Liang of PNC Economics.

Economists warn that recent job growth may appear stronger due to seasonal adjustments and could face downward revisions as more data becomes available. “We expect a different picture in upcoming months; revisions might reveal a tougher economic environment ahead,” Thomas Simons, chief economist at Jefferies, commented.