Fri May 02 11:10:00 UTC 2025: ## Job Growth Slows Amidst Tariff Uncertainty: Wall Street Awaits Crucial Report

**NEW YORK** – Economists predict a significant slowdown in job growth for April, fueling concerns about the economic impact of the Trump administration’s tariff policies. The government’s monthly employment report, due Friday, is expected to show hiring fell to 138,000 positions, down from 228,000 in March. The unemployment rate is projected to remain steady at 4.2 percent.

This slowdown comes as the U.S. economy contracted in the first quarter, largely attributed to a surge in imports ahead of the tariff implementation in early April. While the White House has downplayed the impact, economists express concern that this is just the beginning of a larger economic downturn. Several major companies have already withdrawn their yearly forecasts, citing uncertainty surrounding the trade policies.

Lydia Boussour, a senior economist at EY, anticipates a more pronounced labor market downturn due to the tariffs and increased uncertainty. She also points to federal workforce cuts and tighter immigration as further constraints on job growth, predicting the unemployment rate will climb to 5 percent this year.

Wall Street is closely monitoring the report, with investor sentiment heavily influenced by the ongoing trade wars. Recent market volatility, including a dramatic two-day sell-off following the tariff announcements, underscores the market’s sensitivity to the administration’s actions. While a 90-day pause on most tariffs (excluding those on China) has provided temporary relief, the upcoming expiration in July threatens renewed instability.

Despite the projected slowdown, strong earnings from tech giants and pronouncements from administration officials regarding positive trade negotiations have offered some temporary market stability. However, President Trump’s continued attacks on institutions like the Federal Reserve and his attribution of market downturn to his predecessor continue to contribute to the overall unease. The upcoming jobs report is expected to offer a clearer picture of the economic impact of these policies.

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