Forecasts were for an increase of about 133,000, close to historical monthly averages. The unemployment rate remained unchanged at 4.2%.

Employment in transportation and warehousing surged, increasing by 29,000 in April — a sign of orders ramping up ahead of the tariffs' onset. Federal government positions, meanwhile, fell 9,000 and have declined by 26,000 since January.

Markets ticked higher following the report, while traders trimmed bets that the Fed would cut rates in the short-term.

The run-up to Friday’s report saw debate about how much of the fallout from President Donald Trump’s “Liberation Day” tariffs speech April 2 — and subsequent pause of those country-by-country tariffs — the new data would capture.  

While the tariffs announcement generated massive uncertainty and sent markets tumbling, some of the worst of the impact, as seen in slowing port shipments and stalled hiring, has only recently begun to appear.  

“Despite the impact that the (currently paused) ‘reciprocal tariffs’ are having on global trade, the proverbial ‘tidal wave’ of economic and supply disruption stemming from the tariffs has not yet hit the U.S. shores in a major way,” Matthew Weller, global head of research at Forex.com, said in a note to clients this week.  

Even without the tariffs, Trump’s other policies may be putting a damper on job growth. 

Over the past 12 months, a period mostly capturing the end of Joe Biden’s presidency and the beginning of Trump’s second term, just three hiring sectors have accounted for about 80% of all job growth in the economy, according to Vanguard financial group: government, health care and social assistance, and leisure and hospitality. 

Now, the first two sectors face further headwinds from cuts related to Trump’s Department of Government Efficiency project, Vanguard said, while leisure and hospitality may face a reduced labor pool because of Trump’s crackdown on immigration....