American employers added a surprising 177,000 jobs in April as the job market showed resilience in the face of President Donald Trump’s trade wars.

Hiring fell slightly from a revised 185,000 in March, but that is above economist projections of 135,000 jobs. The unemployment rate remained at a low 4.2%, the Labor Department reported Friday.

Trump’s aggressive and unpredictable policies – including massive import taxes – have clouded the outlook for the economy and the job market and raised fears that the American economy is headed toward recession.

Friday’s report showed employment remains solid, yet many economists anticipate that a negative impact from trade wars will materialize this year for American workers.

Transportation and warehousing companies added 29,000 jobs last month, suggesting companies have built up inventory before imported goods are hit with new tariffs. Health care companies added nearly 51,000 jobs and bars, restaurants almost 17,000 and construction firms 11,000. Factories lost 1,000 jobs.

Labor Department revisions shaved 58,000 jobs from February and March payrolls.

Average hourly earnings ticked up 0.2% from March and 3.8% from a year ago, nearing the 3.5% that economists view as consistent with the 2% inflation the Federal Reserve wants to see.

Trump’s immigration crackdown threatens to make it more difficult for hotels, restaurants and construction firms to fill job openings. By purging federal workers and cancelling federal contracts, Elon Musk’s Department of Government Efficiency risks wiping out jobs inside the government and out.

The drastic changes have shaken markets and consumers. The Conference Board, a business group, reported Tuesday that Americans’ confidence in the economy fell for the fifth straight month to the lowest level since the onset of the COVID-19 pandemic.

The federal government’s workforce fell by 9,000 on top of 17,000 job losses in February and March.

After the jobs numbers were released, Trump repeated his call for the Federal Reserve to lower its benchmark short-term interest rate, which it raised to combat inflation. Trump said on social media platform Truth Social that there is “NO INFLATION” and “employment strong.”

— Associated Press