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Hiring Slows in April: Markets on Edge as NFP Report Looms!
The U.S. jobs report for April is expected to show a slowdown in hiring momentum, while the unemployment rate is likely to remain steady at 4.2% as the second quarter of 2025 begins. Investors are closely watching this report, as it will be the first since former President Donald Trump announced a new round of tariffs, referred to as the "Liberation Day Tariffs," on April 2. The report is considered a key indicator of how these policies are impacting the labor market.
The U.S. Bureau of Labor Statistics is scheduled to release the data on Friday at 3:30 PM Riyadh time. Economists estimate that non-farm payrolls rose by about 138,000 in April, compared to 228,000 in March. The unemployment rate is expected to remain unchanged at 4.2%.
Wage growth is also forecast to increase by 0.3% on a monthly basis and 3.9% annually. Meanwhile, the average weekly hours worked is expected to hold steady at 34.2 hours.
The report comes amid growing signs that the impact of tariffs is starting to be reflected in economic data. A recent report from the Bureau of Economic Analysis showed that the U.S. economy contracted in the first quarter for the first time in three years. Manufacturing activity has also slowed, and consumer confidence has declined.
Despite these negative indicators, the labor market has so far remained relatively resilient. Most economists expect this trend to continue, at least in the short term.
