The U.S. economy added 115,000 jobs in April, marking a slowdown from the previous month but outperforming expectations, according to new data from the Bureau of Labor Statistics (BLS). The unemployment rate stayed steady at 4.3%, remaining low by historical standards despite ongoing economic uncertainties.

The hiring slowdown reflects economic headwinds caused by rising fuel prices following geopolitical tensions in the Middle East. The conflict, which began in late February, has disrupted oil supplies by effectively closing the Strait of Hormuz, a vital global shipping route for crude oil. This disruption pushed gasoline prices up sharply, with the average gallon costing $4.54—an increase of roughly 50% since the conflict began. Higher fuel costs have started to affect consumer spending and borrowing costs, raising concerns about inflation and economic growth.

The health care sector led job creation in April, adding 37,000 positions, while retail, transportation, and warehousing also contributed to the hiring gains. Conversely, the federal government continued to shed jobs, losing 9,000 workers in April and over 348,000 since October 2024, shortly before the previous presidential election.

Revisions to prior months’ data showed mixed adjustments: March hiring was revised upward to 185,000 jobs added, while February’s job losses deepened to 156,000. On average, the U.S. economy generated about 15,000 jobs per month through 2025 so far, a noticeable decline from an average monthly increase of 186,000 jobs in 2024.

Inflationary pressures from energy prices and supply chain disruptions remain key challenges. Increased costs for goods transported through affected routes, including fertilizer and diesel, could further strain prices across sectors. This environment poses a difficult balancing act for policymakers, with the Federal Reserve maintaining interest rates steady amid an economic outlook described as highly uncertain by Fed Chair Jerome Powell. The central bank is closely monitoring the situation before deciding on future rate moves.