The latest jobs report offers a glimpse into the current state of the labor market, revealing key trends that could shape hiring strategies in the months ahead. As employers face economic uncertainty and shifting demand, understanding these developments is crucial for making informed workforce decisions.
Here are the key takeaways from the April report:
- 177,000 jobs were added in April
- The unemployment rate was unchanged at 4.2%
- Workforce participation ticked up to 62.6%
- Wage growth increased 0.2% month-over-month
These figures indicate a labor market that remains steady, but with some subtle shifts that could impact hiring and workforce planning. Below, we break down the trends and offer insights on how to adapt your strategy to the evolving landscape.
Number of Jobs Available
U.S. employers added 177,000 jobs in April, a pace slightly above the 12-month average of 152,000. Most gains came from healthcare (+51,000), transportation and warehousing (+29,000), and financial activities (+14,000), while social assistance posted a more modest gain (+8,000).
Federal government employment declined by 9,000, marking a cumulative drop of 26,000 since January. Other industries—including construction, manufacturing, retail, and hospitality—remained relatively flat.
Unemployment
The unemployment rate remained unchanged at 4.2% in April, consistent with the range seen since May 2024.
In the latest JOLTS report, which reflects hires and separations for March, job openings dipped slightly to 7.2 million, down 901,000 compared to a year ago. Hires held steady at 5.4 million, while total separations edged down to 5.1 million. Quits remained flat at 3.3 million and layoffs declined to 1.6 million.
Overall, the job market showed little movement, continuing a slow but steady cooling trend in labor market activity.
Wage Growth and Workforce Participation
Workforce participation remained mostly unchanged, rising only 0.1% to 62.6%.
Wages grew by 0.2% month-over-month, down slightly from the 0.3% growth seen in March. The annual growth rate held at 3.8%, still below the 4.1% pace reported at the start of the year.
Economic Variables to Keep an Eye On
Economic signals remain mixed — and while the labor market is holding steady, pressure points are emerging.
Here are a few key trends to keep an eye on:
- Tariffs and trade policy: New tariffs rolled out in early April haven’t yet impacted hiring data, but economists expect ripple effects in the months ahead. Manufacturing could be among the first sectors affected. If costs rise and uncertainty lingers, some employers may pause hiring or seek more short-term staffing solutions.
- Job seeker challenges: While layoffs remain low, long-term unemployment is climbing, and continuing claims just hit their highest level since 2021. Many jobseekers are struggling to find full-time roles, and some are turning to multiple jobs to make ends meet — a sign that the labor market may be cooling beneath the surface.
- Wage growth and inflation: Wage growth held steady in April, consistent with recent trends. But with hiring slowing, upward pressure on wages may weaken. This could affect how employers think about compensation strategies and long-term workforce planning.
Even in a stable market, conditions can shift quickly. Staying flexible and informed helps employers stay competitive when the landscape changes.
Winning Moves for Employers
The job market continues to show activity, but both hiring and job search timelines are stretching as economic uncertainty grows.
Here are three smart moves to stay ahead:
- Plan for delayed effects. April’s data doesn’t yet reflect the impact of recent tariffs, but they’re coming. Industries tied to manufacturing, trade, and logistics should prepare now for possible cost increases, supply delays, or shifts in demand. Scenario planning and workforce flexibility will be key.
- Adjust your hiring approach without stalling. While it’s tempting to pause hiring, slowing too much could leave you short when demand picks up. Focus on critical roles, refine your requirements, and stay flexible on your hiring process to widen your pool of candidates, especially given the longer job search times many jobseekers are facing.
- Leverage staffing to navigate uncertainty. With hiring slowing and economic pressures rising, using staffing solutions can provide the flexibility needed to adapt quickly. By bringing in temporary or contract workers, you can scale your workforce based on immediate demand without the long-term commitment, keeping your operations nimble and responsive during this transitional period.
Need Support Navigating What’s Ahead?
Whether you’re adjusting your workforce strategy, filling urgent roles, or planning ahead for what’s next, Verstela is here to help. Our team stays on top of labor market trends and local hiring conditions so you can make informed decisions — and find the right people, right when you need them.
Looking for more insights? Visit our Employer Resource Center for practical tools, hiring tips, and market updates.
