Actalent Labor Market and Economy Report: A Look at Trends in April 2025

Executive Summary

Job Growth

The U.S. economy added 177,000 jobs in April. Notable gains occurred in healthcare (+50,600), transportation and warehousing (+29,000), financial activities (+14,000) and social assistance (+7,600), while notable declines occurred in the federal government (-9,000).

Other industries Actalent supports experienced the following job growth and loss last month: aerospace and defense (-700), architecture and engineering (+5,100), automotive (-4,700), construction (+11,000), manufacturing (-1,000), scientific research and development (-1,800) and utilities (-600).

Unemployment and Labor Force Participation

The unemployment rate was unchanged at 4.2% between March and April. The labor force participation rate increased slightly from 62.5% to 62.6%..

Unemployment rates specific to the industries Actalent supports were as follows for April: hospitals (1.7%), utilities (1.5%), professional and technical services (3.3%), manufacturing (3.2%) and construction (6.1%).

Among skilled labor categories Actalent sources talent for, unemployment in software-IT-mathematics was 3.3%; architecture and engineering was 1.5%; and sciences (life, physical and social) was 2.5%.

Inflation

The year-over-year inflation rate increased by 2.3% between April 2024 and April 2025, slightly below March’s reading of 2.4%. Over the past three months, inflation has made further progress toward the Federal Reserve's 2.0% target. However, due to heightened economic uncertainty, the Federal Reserve has not yet cut interest rates in 2025, emphasizing the importance of a cautious approach to policy adjustments.

Wage Growth

Average hourly earnings increased by 3.8% for the 12 months ending April, unchanged from the increase recorded in March. “Real” average hourly earnings (wages adjusted for inflation) increased by 1.4% between April 2024 and April 2025. In other words, average hourly earnings are keeping up with inflation, but consumers may still be feeling the pressure of higher prices.