The U.S. economy added 115,000 jobs in April, but the unemployment rate held steady at 4.3%. Wages didn't budge, and more workers took part-time positions. The numbers suggest a labor market that's still adding jobs—just not enough to lift incomes or spending power.
The report, released Friday by the Bureau of Labor Statistics, showed a slowdown from March's gain of 196,000 jobs. April's figure landed slightly below what economists had expected, though the unemployment rate stayed at 4.3% for the third straight month.
Stagnant wages and the rise of part-time work
Average hourly earnings barely moved in April. Over the past year, wage growth has been flat, failing to keep pace with even modest inflation. At the same time, the number of people working part-time for economic reasons—meaning they want full-time work but can't find it—climbed. That combination is squeezing household budgets.
One reason wages aren't rising is the shift toward part-time hiring. Employers are adding more part-time roles than full-time ones. That pulls down the average paycheck and makes it harder for workers to cover rent, groceries, and other basics.
Unemployment steady, but underemployment tells a different story
The headline unemployment rate of 4.3% masks a wider problem. A broader measure that includes discouraged workers and those stuck in part-time jobs ticked up. That figure, known as the U-6 rate, now sits at 8.1%.
Job gains were concentrated in a few sectors. Professional and business services added 38,000 jobs. Health care continued its steady climb with 25,000 new positions. Manufacturing and retail both lost workers, shedding 8,000 and 6,000 jobs respectively.
Consumer purchasing power under pressure
Flat wages and more part-time work are directly hitting how much people can spend. Consumer spending, which drives about two-thirds of economic activity, has been cooling in recent months. April's jobs data suggests that trend isn't reversing anytime soon.
Economists at several private firms have noted that the combination of modest job growth, no pay raises, and rising part-time employment is unusual this deep into a recovery. Typically, a tight labor market forces wages higher. That's not happening now.
The question hanging over the next few months is whether the Federal Reserve will see these mixed signals as a reason to hold off on further interest rate moves. The Fed's next policy meeting is scheduled for mid-June.
