May 2025 Market Trends Report
Economists continue to anticipate the impact of tariff anxieties on monthly job reports, yet April saw another month of stable job growth.
Employers added 177,000 jobs, and unemployment retained its 4.2% rate, according to the Bureau of Labor Statistics’ (BLS) Employment Situation Summary.
More than half of all reported industries broadened payrolls, with gains mostly concentrated in healthcare (+59,000 jobs) and transportation and warehousing (+29,000 jobs).
Among the industries that lost jobs, government shed 9,000 payrolls (on top of the 17,000 lost earlier this year in DOGE layoffs), yet overall unemployment remains historically low.
Most Americans enjoy job security right now, and those who are looking for jobs in the industries we serve were finding them faster and with greater confidence in Q1 2025 (compared to Q4 of last year). However, in Q2, the ease of finding employment seems to be falling as the median duration of unemployment continues to rise.
Overall, the job market’s resiliency continues to surprise economists in the face of massive policy changes. Trade uncertainty and high interest rates are clouding the broader economic outlook, and some anticipate it will spill over to the labor market in months to come.
Jobs Market Overview: April 2025
4.2%
Overall unemployment rate
Unemployment maintained a historically low rate through April.
177k
Jobs added
The April labor market continues a positive and stable trend into Q2.
62.6%
Labor force participation rate
Labor force participation changed little, increasing slightly above its lowest level since January 2023.
Industry Employment Trends
OVERALL ECONOMY
+177k
Monthly job change
(+1,882,00 year over year)
| Industry | Monthly Job Change | YoY Difference |
| Manufacturing | -1k | -82k |
| Automotive | -4.7k | -20.8k |
| Warehousing & Storage | +9.8k | +4.2k |
| Architectural & Engineering | +5.1k | +54.8k |
| Construction | +11k | +143k |
Source: Bureau of Labor Statistics' Economic News Release
Construction Industry Outlook
“Construction organizations can’t afford to be reactive in this market. Given tariff whiplash and increasing material prices in an already challenging market, running lean could offer a strategic advantage. However, as projects break ground and opportunities arise, organizations must be prepared to scale and deliver quickly, especially when timelines are pressing.
This is where agility becomes paramount. Companies that are proactive with a contingent workforce provider can hedge against market uncertainty — while standing ready to tackle new projects that could be around the corner.“
Joshua Miles
Business Development Manager and Divisional Lead — Construction Support
Sector-by-Sector News: April 2025
Construction Jobs Report
Construction Monthly Employment Change: +11,000 jobs
Job growth continued in the construction industry, with employers adding 11,000 jobs in April. Despite worsening economic outlooks, contractors seem optimistic as staffing levels continue to expand.
Construction job gains included:
- Specialty trade: +9,000 jobs
- Nonresidential building: +3,600 jobs
- Residential building: -700 jobs
- Heavy and civil engineering: -500 jobs
Throughout the first quarter of 2025, public-sector investments and elevated backlogs have buoyed growth across the construction industry.
However, Associated Builders and Contractors (ABC) Chief Economist Anirban Basu warned that “April is likely the last month of economic data largely unaffected by tariffs and tariff-related uncertainty.”
Additionally, construction unemployment continues to fluctuate, rising to 5.6% — after steeply dropping from 7.2% to 5.4% in March
Warehousing & Storage Jobs Report
In the warehousing and storage industry, strong employment growth marched alongside swelling inventories from importers who are rushing shipments ahead of tariff implementations.
After dropping 9,400 jobs in March, hiring initiatives within warehousing and storage skyrocketed in April, with employers adding 9,800 jobs. Additionally, March’s numbers were substantially revised up by 20,000+ jobs.
“Trade war and tariff-driven disruptions are the likely culprits behind the recent strength,” Arrive Logistics Vice President of Market Intelligence, David Spencer stated.
“Strong growth of 29,000 jobs in the larger Transportation and Warehousing segment of the report illustrate the increased needs associated with the boost, particularly around warehousing and storage, as shippers pulled forward inventories ahead of potential price increases.”
It’s clear that commentators and economists believe that trade policy reactivity has propelled employment rates. While hiring plans will likely slow after existing import surges, longer-term growth initiatives could underlie some significant boosts in employment.
Manufacturing Jobs Report
Manufacturing Monthly Employment Change: -1,000 jobs
April Manufacturing PMI: 48.7%
*A PMI below 50% suggests economic activity is expanding.
Tariff applications brought demand confusion for manufacturers as the quarter closed. After two months of marginal expansion that were preceded by 26 months of contraction, the Institute for Supply Management’s (ISM) PMI contracted for a second consecutive month in April.
The ISM’s report highlights ongoing economic headwinds, with companies adjusting production plans and continuing destaffing efforts, cutting 1,000 jobs month over month.
Tariff-driven pricing and inventories continued to surge slightly, leading to increased backlogs and slower supplier deliveries, while both demand and output (i.e., production) deflated.
“Inventory growth is not a positive sign when demand is moving in the opposite direction,” ISM Chair Timothy Fiore noted. “The recent expansion is considered a temporary move to avoid tariffs, and levels will decline when such trade issues are resolved.”
Manufacturing industries that reported growth include:
- Apparel
- Leather & Allied Products
- Petroleum & Coal Products
- Plastics & Rubber Products; Electrical Equipment
- Appliances & Components
- Textile Mills
- Computer & Electronic Products
- Nonmetallic Mineral Products
- Miscellaneous Manufacturing
- Machinery
- Chemical Products
- Primary Metals
Manufacturing industries that contracted in April include:
- Wood Products
- Furniture & Related Products
- Paper Products
- Food, Beverage & Tobacco Products
- Transportation Equipment
- Fabricated Metal Products