Robust Development of the US Labor Market
The current US labor market data for April 2025 shows a robust development that sends positive signals for the stock market. Let’s take a closer look at the key aspects:
Core Labor Market Numbers
- Job Growth: The US economy created 177,000 new jobs in April – more than expected.
- Unemployment Rate: Stable at 4.2%, after 4.1% in February and 4.2% in March.
- Revisions: The figures for February and March have been revised downwards by a total of 58,000 jobs, which, however, does not diminish the current momentum.
Impact on Financial Markets
The data confirms a resilient economy despite geopolitical tensions and stock market turbulence. This could have the following effects:
- Stock Market Rally: The market reacted immediately positively to the surprisingly strong data.
- Fed Policy: The central bank feels confirmed in its current pause in interest rates, as a strong labor market poses additional inflation risks.
Risks and Context
- Bloomberg Economics predicts a possible deterioration in labor market conditions in May, which could trigger future corrections.
- Trump’s call for interest rate cuts contradicts the data-driven Fed strategy, which increases political pressure.
For private investors, this means: In the short term, stocks may continue to benefit, while in the long term the Fed’s response to wage developments remains crucial. Diversification remains prudent in light of possible adjustments.