From Jobs Data to Portfolio Decisions: Financial Planning Insights for Spring 2025

Good afternoon, everyone. Thank you for joining us today as we review the April Jobs Report and discuss its implications for your financial plan and investment strategies.

Let’s begin with a quick overview of the data. According to CNBC and Forbes, the U.S. economy added more jobs in April than most economists expected, with robust healthcare, transportation, and financial services hiring. At the same time, the unemployment rate held steady, and wage growth showed signs of moderating. However, it’s important to note that there were downward revisions to previous months, and ongoing federal layoffs and tariff concerns remain on the horizon.

So, what does this mean for your retirement savings and investments?

First, the significant job growth in key sectors like healthcare and financial services signals continued opportunities for long-term investors. This should instill a sense of optimism and hope for your financial future. If you’re contributing to a 401(k) or IRA, now may be a good time to review your allocations and ensure you’re diversified across sectors that are showing resilience, as highlighted by Morningstar and Business Insider.

Second, the Federal Reserve may be less likely to raise interest rates soon with wage growth stabilizing. This could benefit bondholders and those considering adding fixed income to their portfolios, as discussed in recent coverage by the Wall Street Journal.

Third, the labor force participation rate is ticking up, which means more people are entering or re-entering the workforce. For those planning for retirement, this could influence Social Security projections and cost-of-living adjustments, so it’s wise to revisit your long-term income assumptions.

Finally, with ongoing uncertainty around tariffs and federal job cuts, it’s essential to maintain a disciplined approach. This will provide you with a sense of reassurance and security. Keep a cash reserve for emergencies and consider reducing exposure to sectors most affected by these risks, such as manufacturing and retail.

In summary, the April jobs data paints a picture of cautious optimism. By staying diversified, monitoring economic trends, and working with your advisor to adjust your plan, you can confidently navigate these changes. Remember, the significant job growth in key sectors like healthcare and financial services signals continued opportunities for long-term investors, leaving you with a sense of optimism and confidence about your financial future.

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Duncan Williams Asset Management is a Registered Investment Advisor. This material is for informational purposes only and does not constitute investment advice, an offer, or a recommendation to buy or sell any security. Past performance does not guarantee future results. All investments involve risk, including the possible loss of principal. Please consult your financial advisor for personalized advice. For more information about our services and important disclosures, please review our Form CRS and ADV Part 2A at www.dwassetmgmt.com/disclosures.‍

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Sources

1. CNBC: April 2025 Jobs Report
   https://www.cnbc.com/2025/05/02/jobs-report-april-2025.html
2. Morningstar: April Jobs Forecast
   https://www.morningstar.com/markets/april-jobs-report-forecasts-show-stable-growth-impact-federal-layoffs-tariffs-looms
3. USA Today: April Jobs Data
   https://www.usatoday.com/story/money/2025/05/02/jobs-report-april-data/83333519007/
4. Forbes: Unemployment Rate Analysis
   https://www.forbes.com/sites/dereksaul/2025/05/02/us-added-177000-jobs-in-april-as-unemployment-rate-holds-at-42/
5. CNN: Jobs Report Insights
   https://www.cnn.com/2025/05/02/economy/what-to-expect-from-fridays-jobs-report
6. Business Insider: April Jobs Growth
   https://www.businessinsider.com/april-jobs-report-unemployment-rate-employment-federal-reserve-interest-rates-2025-5
7. Wall Street Journal: Employers and Tariffs
   https://www.wsj.com/economy/jobs/jobs-report-april-2025-unemployment-economy-6ad2bdac

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