The U.S. labour market showed modest movement in April 2026, with total nonfarm payroll employment edging up by 115,000 jobs while the unemployment rate held steady at 4.3 percent. The report, released by the Bureau of Labor Statistics on May 8, 2026, showed job gains concentrated in health care, transportation and warehousing, and retail trade, while federal government employment continued its downward trend.

On the household survey side, the picture was largely one of stability. The number of unemployed people changed little at 7.4 million, with both the unemployment rate and headcount showing little change over the year. Unemployment rates across major demographic groups — adult men at 4.0 percent, adult women at 3.9 percent, teenagers at 14.4 percent, and across racial and ethnic groups — were essentially flat. However, there were some softer signals beneath the surface: the number of people jobless less than 5 weeks rose by 358,000 to 2.5 million, and those working part time for economic reasons (because hours were cut or full-time work wasn’t available) climbed by 445,000 to 4.9 million. Long-term unemployed workers (jobless 27+ weeks) were little changed at 1.8 million but still represented about a quarter of all unemployed people. Both labour force participation (61.8 percent) and the employment-population ratio (59.1 percent) were essentially flat for the month but had edged down over the year.

Looking at industry detail from the establishment survey, health care led the way with 37,000 jobs added — in line with its 12-month average — driven by gains in nursing and residential care facilities and home health services. Transportation and warehousing added 30,000 jobs, largely from couriers and messengers, though the broader sector remains down 105,000 from its February 2025 peak. Retail trade added 22,000 jobs, with strength in warehouse clubs and supercentres and home improvement retailers offsetting losses in department stores and electronics retailers. Social assistance continued trending up with 17,000 added jobs. On the negative side, federal government employment declined by another 9,000 in April and is now down 348,000, or 11.5 percent, since its October 2024 peak — a significant ongoing contraction. The information sector also shed 13,000 jobs and is down 11.0 percent from its November 2022 peak. Most other major industries — including construction, manufacturing, financial activities, professional and business services, and leisure and hospitality — were essentially flat.

On the wages and hours front, average hourly earnings for private nonfarm employees rose 6 cents (0.2 percent) to $37.41, with year-over-year wage growth at 3.6 percent. The average workweek edged up 0.1 hour to 34.3 hours. Finally, the BLS revised prior months’ figures: February was revised down by 23,000 (to -156,000) while March was revised up by 7,000 (to +185,000), leaving the two months combined 16,000 jobs lower than previously reported. Taken together, the April report paints a picture of a labour market that is cooling but not collapsing — hiring has slowed materially compared with prior years, federal layoffs remain a persistent drag, and signs of underemployment are creeping up, even as headline unemployment and wage growth remain stable.

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