The U.S. labor market added 177,000 jobs in April 2025, signaling continued but slowing growth as the unemployment rate held steady at 4.2%. Gains were concentrated in healthcare, logistics, finance, and social services, while construction, retail, and hospitality saw little change. Long-term unemployment rose to 1.7 million, and downward revisions to previous months’ job gains suggest cooling momentum. Federal employment continued to decline, with 26,000 jobs lost since January. Despite stable wage growth and steady participation rates, the rise in long-term joblessness and ongoing public sector cuts point to a labor market facing increasing challenges.
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