May 5, 2025

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WASHINGTON, D.C. — The U.S. Bureau of Labor Statistics (BLS) reported Friday that employers across the U.S. added 177,000 jobs in April, with gains concentrated in health care, transportation and warehousing, financial activities, and social assistance. The unemployment rate held steady at 4.2%.  

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At the same time, other indicators suggest economic uncertainty may be rising.  Initial unemployment claims increased by 18,000 to 241,000 for the week ending April 26—the highest level since February. According to BLS, 7.2 million people are currently unemployed.

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“The headline job numbers are encouraging, and the increase in jobless claims and the broader decline in consumer confidence point to a labor force that is still vulnerable,” said Marisa Calderon, President and CEO of Prosperity Now. “As economic conditions shift, our priority must be not only job creation but also job quality—ensuring work provides a pathway to lasting financial stability.”

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The Conference Board Consumer Confidence Index declined for the fifth consecutive month, dropping 7.9 points in April to 86.0 (1985=100), its lowest level since the early months of the pandemic. The Index reflects public sentiment about current conditions and future expectations, with recent declines driven by concerns about job prospects, household income, and the potential effects of proposed tariff policies.  

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“This drop in consumer confidence matters,” Calderon noted. “If households begin to curb spending, it could affect business growth, particularly in sectors reliant on discretionary income. Understanding this feedback loop is essential for both policymakers and private sector leaders navigating today’s economy."

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Prosperity Now works to connect data-driven policy analysis with on-the-ground realities. Through partnerships with community lenders, financial institutions, and government agencies, the organization advances practical strategies to strengthen financial resilience, expand access to capital, and support small businesses and workers across the country.  

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