Economy added 115,000 jobs in April, modest boost amidst economic uncertainty: CEI analysis

The jobs report for April shows 115,000 jobs were added to the economy, a modest boost compared to previous months. While unemployment remains unchanged and a positive report last month is welcomed news, the past year has seen the labor force shrink, a sign the economy has been hit hard from policies enacted in Washington.

Ryan Young, senior economist:

“The good news is that the unemployment rate is 4.3 percent. Anything under 5 percent is generally considered full employment.

“The bad news is that the labor force has shrunk by 92,000 jobs over the last year, despite last month’s gains. This decline happened even as America’s population grew by nearly 2 million people.

“The labor force participation rate is down to 61.8 percent, which is roughly where it was during the pandemic recovery in 2021, and below any pre-COVID year since 1976.

“Higher prices from tariffs and the Iran war have also wiped out real wage gains over the last year. While transportation jobs increased in April, higher fuel costs could put some of those jobs in jeopardy.”

Sean Higgins, research fellow:

“The Labor Department’s Friday report that the economy gained 115,000 jobs in April, above projections, suggests the attempts to wind down the war with Iran and the relative calm on the tariff front have modestly boosted the economy. Employers are beginning to see a light at the end of the tunnel but remain cautious, aware that these trends are fragile and can reverse themselves. Hence, the so-called “no hire, no fire” economy.

“The number of people employed part time for economic reasons increased by 445,000 to 4.9 million in April, suggesting that short-term “gig economy” jobs remain a lifeline for workers in this uncertain environment. Congress should resist efforts to curb this sector.

“Ironically for the administration, its own success with downsizing the government accounts for 9,000 of April’s job losses. The federal workforce has been reduced by 348,000, or 11.5 percent, since October 2024. The Department of Government Efficiency succeeded in its main mission, showing that government bloat can be pared back if the will exists.”