State Jobs Report, Fed Reserve Meeting Watched Amid Trump Tariff Uncertainty
Inflation numbers and lingering impact of shaky supply chain on businesses across states weigh on key reports
Two key events will define this U.S. trading week. One of them is the state employment and unemployment report from the Bureau of Labor Statistics. It will be watched for impact of Donald Trump administration’s policies on migrant labor force, without which businesses could struggle to remain profitable. Even more important is the Federal Reserve meeting that discusses finetuning interest rates.
The market does not expect deviation from Fed Reserve chair Jerome Powell’s assessment that the elusive inflation rate moderation could delay further rate cuts. The Federal Open Market Committee (FOMC) kept the rates unchanged in the past three deliberations after 11 successive rate cuts. Trump has been pressing for rate cuts to spur economic growth that tariff uncertainties and trade wars have threatened to stall. However, the Fed Reserve has been equally worried about inflation numbers reversing the gains that they made over the past few months.
Jobless rate increase
Last month, BLS reported that, in April, the unemployment rates were higher in 3 states and the District of Colombia. They were lower in 2 states and remained stable in 45. If the rates improve in the states that have seen the worst migrant labor exodus, that would be a boost for the government’s labor policies.
From the numbers a year earlier, 26 states and the District saw the jobless rate increase, 1 state witnessed a decrease, and 23 states saw little change, the report said. The national unemployment rate was unchanged at 4.2% but was 0.3 percentage points higher than in April 2024.
Related News: Employment Rate Steady in 47 US States as Economy Remains Resilient Amid Tariff Worries
The District of Columbia had the highest unemployment rate at 5.8% in April 2025, followed by Nevada at 5.6%. South Dakota had the lowest jobless rate in April at 1.8%. In total, 19 states had unemployment rates lower than the U.S. figure of 4.2%, 6 states and the District had higher rates, and 25 states had rates that were not appreciably different from that of the nation.
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