The Labor Department report revealed that factories in the United States lost one thousand jobs during the months of February and March. This adds to the unemployment rate of 4.2 percent, which remained steady. In total, employers in the country added 177 thousand jobs in April, exceeding expectations and showing some resilience against the tariffs imposed by Trump.
According to economists, the president's aggressive and unpredictable trade policies could negatively affect the labor market if they impact economic growth. Despite this, the labor market does not yet fully show potential damage. Brian Bethune, an economist at Boston College, noted before the report's publication that no significant adverse effects in the labor market had been observed so far.
Transportation and warehousing companies added 29 thousand jobs in April, while health care businesses added nearly 51 thousand positions. On the other hand, construction companies generated 11 thousand jobs, and bars and restaurants created almost 17 thousand new positions. However, Elon Musk's Government Efficiency Department, by reducing its staff, could affect both the government and the private sector.
Economists express concern that uncertainty and volatility in the financial market could lead to a more pronounced slowdown in the labor market than expected. And although slower immigration may restrict job growth, many employers prefer to keep their workers amid the current uncertainty.
Regarding job cuts in Elon Musk's Government Efficiency Department, it is expected that the full effect has not yet been reflected in the labor market. Some workers have retired early due to the department's layoff orders. It is likely that some of these employees are not reflected in the Labor Department's unemployment statistics, which could affect the actual employment figures in the country.
