05
May 2025
The US unemployment rate remained steady at 4.20% in April 2025, unchanged from March and consistent with market forecasts.
Adriaan Pask
Chief Investment Officer, PSG Wealth
Event
• The US unemployment rate remained steady at 4.20% in April 2025, unchanged from March and consistent with market forecasts.
• The number of people classified as unemployed rose by 82 000, reaching a total of 7 165 million.
• Employment figures increased by 436 000, bringing the total number of employed individuals to 163 944 million.
• The labour force participation rate saw a slight increase from 62.50% in March to 62.60% in April.
• The employment-to-population ratio also experienced a minor uptick, increasing from 59.90% to 60%.
• The broader U-6 measure of unemployment, which accounts for underemployed and marginally attached workers, dropped from 7.90% in March to 7.80% in April.
Labour force participation comparison between March and April 2025 (Numbers in thousands)
Source: US Bureau of Labor Statistics
The Impact
• The yield on the 10-year US Treasury note climbed above 4.27% on Friday, driven by April's non-farm payroll figures, which came in stronger than anticipated.
• US shares posted solid gains after the announcement of the labour market data, easing concerns about a potential recession in 2025.
• The S&P 500, Dow Jones and Nasdaq 100 each advanced by over 1%, with the S&P 500 and Dow on track for a nine-session winning streak.
• The US Dollar Index (DXY) trimmed earlier declines to hover close to the 100-mark following the release of the employment data indicating a labour market that is cooling yet remains robust.
The Assessment
• Employment growth in the US eased slightly in April and the labour market outlook remains uncertain amid rising economic concerns linked to President Donald Trump's assertive tariff strategy.
• Our solutions are strategically allocated to leading active managers with the expertise and agility to not only seize emerging opportunities but also effectively navigate and mitigate risks arising from such economic climates.
• The next US unemployment rate data will be released on Friday, 6 June 2025.