US Job Growth Cools in April: Tariffs Cast a Shadow on Hiring
US Job Growth Cools in April: Tariffs Cast a Shadow on Hiring
WASHINGTON (Reuters) – U.S. job growth is expected to have moderated in April, largely attributed to the growing economic uncertainty stemming from President Donald Trump’s assertive tariff policies. While the labor market has demonstrated remarkable resilience, the escalating trade tensions are beginning to impact hiring decisions across various sectors.
According to economists surveyed by Reuters, the U.S. economy likely added around 175,000 jobs last month, a significant slowdown compared to the 303,000 jobs added in March. This projected decrease reflects a broader trend of businesses holding back on expansion plans and new hires due to the unpredictable trade environment.
The Tariff Effect: Uncertainty and Hesitation
The Trump administration's imposition of tariffs on goods imported from China and other countries has created a climate of uncertainty for businesses. Companies are hesitant to invest in new equipment, expand operations, or hire additional workers when faced with the possibility of increased costs and disrupted supply chains. This hesitation is particularly evident in sectors heavily reliant on international trade, such as manufacturing and agriculture.
“The trade war is definitely having an impact,” noted one economist. “Businesses are waiting to see how the situation unfolds before making major commitments, and that’s leading to a slowdown in hiring.”
Key Sectors Feeling the Pressure
While the overall impact of tariffs is still unfolding, certain sectors are already feeling the pressure. Manufacturers are grappling with higher input costs, while farmers are facing reduced export demand. The service sector, while generally less exposed to trade tensions, is also experiencing a ripple effect as overall economic growth slows.
Unemployment Rate and Wage Growth
Despite the slowdown in job growth, the unemployment rate is expected to remain low, hovering around 3.6%. This indicates that the labor market is still relatively tight, with employers competing for skilled workers. Wage growth is also expected to remain moderate, reflecting the ongoing balance between labor demand and supply.
Looking Ahead: A Cautious Outlook
The future of U.S. job growth hinges on the resolution of the trade dispute and the broader economic outlook. If tariffs are eased or removed, businesses may be more willing to resume expansion plans and boost hiring. However, if trade tensions persist, the slowdown in job growth could continue.
Analysts are closely monitoring upcoming economic data, including inflation figures and consumer spending reports, to gauge the overall health of the economy and the potential impact of trade policies. The coming months will be crucial in determining whether the slowdown in April is a temporary blip or a sign of a more significant shift in the U.S. labor market.
The Federal Reserve is also expected to keep a close eye on the situation and may adjust monetary policy accordingly to support economic growth and maintain price stability.