US employers defy economic shock from Iran war and add a surprisingly strong 115,000 jobs in April

WASHINGTON (AP) — America’s employers delivered a surprising 115,000 new jobs last month despite an economic shock from the Iran war.

Hiring beat the 65,000 jobs forecasters had expected, though it decelerated from the 185,000 jobs created in March. The unemployment rate remained at a low 4.3%, the Labor Department reported Friday.

The Iran war has caused the biggest disruption of global oil supplies in history and sent average U.S. gasoline prices surging past $4.50 a gallon this week. But the conflict hasn’t done much damage to the American job market so far. And the import taxes — tariffs — that President Donald Trump imposed last year haven’t turned out to be as high and as damaging as originally feared.

“The labor market is not booming, but it is proving harder to break than` many feared,’’ said economist Olu Sonola of Fitch Ratings.

Healthcare added 37,000 jobs last month and transportation and warehousing companies 30,000. However, manufacturers cut 2,000 jobs in April and have shed 66,000 jobs over the past year despite Trump’s protectionist policies aimed at creating factory jobs.

“Businesses to some extent are viewing the conflict in Iran as temporary,” said Gus Faucher, chief economist at the financial firm PNC. ”We’re seeing strong business investment, particularly around tech and AI. The economy continues to expand. We’ve weathered some shocks. The worst of the tariff impact is likely over.”

Still, Faucher cautioned that “the longer conflict in Iran lasts, the higher energy prices go, the longer they stay elevated the greater the drag on the economy.”

Labor Department revisions shaved 16,000 jobs from February and March payrolls.

Average hourly earnings rose 0.2% from March and 3.6% from April 2025, consistent with the Federal Reserve’s 2% inflation target.

The number of people in the U.S. labor force dropped last month, and the share of those working or looking for work — the so-called labor force participation rate — dropped to 61.8%, lowest since October 2021.

But the job market keeps chugging along this year.

The economy is getting a boost from big tax refund checks this spring, arising from Trump’s tax cut legislation last year; the refunds allow consumers to spend more freely, giving companies an incentive to add workers in response to rising sales.

The job market is showing intermittent signs of recovery after a bleak 2025. Employers last year created just 9,700 jobs a month, fewest outside a recession year since 2002. High interest rates and uncertainty over Trump’s economic policies held back hiring.

The March and April hiring figures marked the first consecutive months of job growth above 100,000 since the end of 2024.

FILE – A job seeker waits to talk to a recruiter at a job fair Aug. 28, 2025, in Sunrise, Fla. (AP Photo/Marta Lavandier, File)

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