Chicago – May 02, 2025
In April, hiring in the United States had slowed slightly as President Trump’s trade war began to impact the broader economy. According to data released by the Labor Department on Friday, U.S. employers added 177,000 jobs during the month, a modest decline from the revised figure of 185,000 jobs added in March. However, the decrease was smaller than many economists had predicted, even as trade tensions escalated. The unemployment rate remained steady at 4.2%, despite more than 500,000 people entering or rejoining the workforce.
Job growth in April had come mainly from sectors such as hospitals, restaurants, and warehouses, while the federal government continued to reduce its workforce. Additionally, job gains from February and March were revised downward by a total of 58,000 positions.
At the start of the previous month, President Trump had announced sweeping new tariffs. Although some of those import duties were later suspended, the average tariff rate remained the highest since at least the Great Depression. Economists at the International Monetary Fund had projected that these tariffs would lead to higher consumer prices and slower economic growth.
The trade war had already made its mark on the stock market. By Thursday, the S&P 500 index had dropped about 6.5% since Trump’s inauguration. The tariffs had also shaken consumer confidence, contributing to a more negative economic outlook. In April, a key consumer confidence index had fallen to its lowest point since the early days of the COVID-19 pandemic.
Manufacturers, many of whom relied on imported components or raw materials, had also begun to feel the strain. Factories had eliminated 1,000 jobs in April. A survey by the Institute for Supply Management revealed that factory orders and output had both declined during the month, while prices had gone up. The biggest concern among factory managers had been the tariffs.
“We were on the edge of a cliff,” said Tim Fiore, who managed the monthly survey. “Hopefully we wouldn’t go over it, but the signs at the time were definitely not encouraging.”
