Nonfarm payrolls added 142,000 jobs in April 2026, below the Refinitiv consensus estimate of 165K. The prior two months were revised down a combined 38,000. Unemployment rose 0.1 point to 4.2%, the highest since late 2021.
Health care and government were the primary contributors (+32K and +21K). Manufacturing shed -8,000 for the fourth consecutive month as tariff-related inventory drawdowns continue to suppress domestic production orders. Retail was flat. Average hourly earnings rose 3.8% year-over-year on a 0.2% monthly increase, the slowest annual pace since February 2022 and now running close to the Fed’s implicit ~3.5% target for wage growth consistent with 2% inflation.
The labor market is cooling but not breaking. The 4.2% unemployment rate is still historically low. The Fed will watch the next two prints to determine whether this is a soft patch or the start of a more meaningful deceleration.