Research
May 08, 2026
Total U.S. jobs
U.S. job growth rose the third time in the past four months, but participation declined again
Nonfarm payrolls increased by a solid 115,000 in April, well above the consensus estimate of 55,000 and building on the revised gain of 185,000 in March. While job growth has fluctuated month to month through much of the second half of 2025, employment has risen in three of the past four months, resulting in a net gain of 304,000 so far this year. This performance is encouraging given the pervasive economic uncertainties and underscores the underlying resilience of the U.S. economy.
At the same time, the civilian labor force has contracted notably so far this year, declining from 171.50 million in December 2025 to just under 170.00 million in April. The labor force participation rate also edged down, slipping from 61.9% in March to 61.8% in April, the lowest level since October 2021. This suggests that a meaningful share of potential workers has moved to the sidelines, posing an ongoing challenge for employers. Even as overall labor market conditions show signs of cooling, many businesses, including restaurants, will continue to struggle to find and retain talent.
The unemployment rate remained at 4.3% for the second straight month, which has been the average since June 2025. Yet, the number of unemployed individuals was somewhat higher, up from 7.24 million in March to 7.37 million in April.
As can be seen above, these data provide mixed comfort, with signs of both resilience and softening in the labor market. Steady employment and wage growth have been essential drivers of consumer spending, and any sustained weakness could weigh on economic activity.
Restaurant operators are closely monitoring these labor trends as they work to drive traffic and sales against a backdrop of softer demand. While there are positive indicators that could support solid performance for the sector this year, risks remain, including a cooling labor market, higher energy costs, and heightened geopolitical uncertainties, among other factors.
At the same time, average hourly earnings for private‑sector production and nonsupervisory workers rose 0.3% to $32.23 in April, up 3.7% from a year earlier. This suggests a still-solid rate of wage growth in the U.S. economy, even as labor cost pressures have eased markedly from their peaks of 7.8% in April 2020, in the immediate aftermath of the pandemic, and 7.0% in January and March 2022.
Job growth in April was largely positive but mixed. The increase in employment was led by growth in trade, transportation and utilities (including retail trade), private education and health services, and leisure and hospitality (including restaurants), among others. At the same time, there were notable declines for information, financial activities, the federal government, and manufacturing. Below is a detailed breakdown of April’s employment changes by sector, ranked from highest to lowest:
At the same time, the civilian labor force has contracted notably so far this year, declining from 171.50 million in December 2025 to just under 170.00 million in April. The labor force participation rate also edged down, slipping from 61.9% in March to 61.8% in April, the lowest level since October 2021. This suggests that a meaningful share of potential workers has moved to the sidelines, posing an ongoing challenge for employers. Even as overall labor market conditions show signs of cooling, many businesses, including restaurants, will continue to struggle to find and retain talent.
The unemployment rate remained at 4.3% for the second straight month, which has been the average since June 2025. Yet, the number of unemployed individuals was somewhat higher, up from 7.24 million in March to 7.37 million in April.
As can be seen above, these data provide mixed comfort, with signs of both resilience and softening in the labor market. Steady employment and wage growth have been essential drivers of consumer spending, and any sustained weakness could weigh on economic activity.
Restaurant operators are closely monitoring these labor trends as they work to drive traffic and sales against a backdrop of softer demand. While there are positive indicators that could support solid performance for the sector this year, risks remain, including a cooling labor market, higher energy costs, and heightened geopolitical uncertainties, among other factors.
At the same time, average hourly earnings for private‑sector production and nonsupervisory workers rose 0.3% to $32.23 in April, up 3.7% from a year earlier. This suggests a still-solid rate of wage growth in the U.S. economy, even as labor cost pressures have eased markedly from their peaks of 7.8% in April 2020, in the immediate aftermath of the pandemic, and 7.0% in January and March 2022.
Job growth in April was largely positive but mixed. The increase in employment was led by growth in trade, transportation and utilities (including retail trade), private education and health services, and leisure and hospitality (including restaurants), among others. At the same time, there were notable declines for information, financial activities, the federal government, and manufacturing. Below is a detailed breakdown of April’s employment changes by sector, ranked from highest to lowest:
- Trade, transportation, and utilities: +60,000 (retail trade: +21,800)
- Private education and health services: +46,000
- Leisure and hospitality: +14,000 (eating and drinking places: +17,200)
- Other services: +10,000
- Construction: +9,000
- Professional and business services: +7,000
- Mining and logging: +3,000
- State government: +1,000
- Local government: no change
- Manufacturing: -2,000
- Federal government: -9,000
- Financial activities: -11,000
- Information: -13,000