April 2025 Jobs Report: What Slower Wage Growth and Steady Hiring Tell Us
he April 2025 Jobs Report offers a mixed but generally positive outlook for the labor market. With 177,000 jobs added beating the forecasted 130,000. The report points to continued resilience in key sectors like healthcare, transportation, and warehousing. However, wage growth slowed to 0.2%, signaling reduced pressure on employers and potentially influencing future Federal Reserve decisions.
Meanwhile, the broader U-6 unemployment rate, which includes underemployed and discouraged workers, remained elevated at 7.8%, about 0.9 percentage points higher than a year ago. This persistent level suggests some slack remains in the labor market, despite strong hiring numbers.
In sector specific updates, financial activities added 14,000 jobs in April, marking a total of 103,000 jobs gained since April 2024. Conversely, federal government employment declined by 9,000, though this was partially offset by gains at the state and local levels.
Job Openings Hold Steady, Employer Confidence Wavers
According to the March JOLTS data included in the April 2025 Jobs Report, the number of job openings held steady at 7.2 million, but this represents a significant decline of over 900,000 openings year-over-year. While this may signal employer caution, it also highlights an ongoing recalibration in hiring strategies amid economic uncertainty.
Hires and separations both hovered at stable levels, 5.4 million and 5.1 million, respectively. Quits, a reliable indicator of worker confidence, remained at 3.3 million, while layoffs edged down to 1.6 million.
Participation and Pay Metrics: Slow Progress
Labor force participation among prime age workers (25–54) ticked up by 0.3 percentage points to 83.6%, while the overall rate rose to 62.6%, still below pre pandemic levels. Average hourly earnings increased by just $0.06 to $36.06, resulting in a 12 month growth rate of 3.8%.
The average workweek for private non farm employees held steady at 34.3 hours. Notably, the manufacturing sector saw a slight decline in hours worked, while overtime remained consistent at 2.9 hours.
What It Means Moving Forward
The April 2025 Jobs Report suggests a labor market that’s growing, but at a more measured pace. With wage growth softening and hiring remaining steady, the report may encourage the Federal Reserve to reassess its interest rate strategy. For staffing firms and HR professionals, the data signals a shift toward a more stable, less overheated employment landscape, ideal for long term planning.
How Madison Resources Can Support Your Staffing Success
At Madison Resources, we understand that navigating the complexities of a changing labor market, like those highlighted in the April 2025 Jobs Report, requires more than just staying informed. You need a partner who can help you act on the data. From payroll funding and back office support to compliance and strategic guidance, we empower staffing firms to stay agile and grow with confidence. As hiring trends shift and wage dynamics evolve, let Madison Resources be your behind the scenes engine, giving you the freedom to focus on what you do best: placing top talent and driving results.
Ready to start your funding journey? Partner with Madison Resources today [apply here]
About the Author
Nick Andriacchi is the Chief Revenue Officer at Madison Resources, bringing over 30 years of experience in the funding and payroll industry. Before joining Madison, Nick held leadership roles at two other funding companies, where he built a reputation as a trusted advisor and strategic thinker. Widely regarded as a true industry expert, Nick is passionate about helping staffing firms grow through smart funding solutions and operational support.
Explore our website to find more staffing insights. Madison Resources is the premier payroll funding and back office support partner to the staffing industry. Grow with confidence.