America’s employers added a stronger-than-expected 115,000 jobs in April despite economic uncertainty triggered by the Iran war, according to data released by the US labor department on Friday.The unemployment rate remained unchanged at 4.3 per cent, while hiring beat economists’ expectations of 65,000 new jobs, although it slowed from the revised 185,000 jobs added in March.The latest data suggests the US labour market has remained resilient even as the conflict in West Asia disrupted global oil supplies and pushed average US gasoline prices above $4.50 a gallon this week.“The labor market is not booming, but it is proving harder to break than many feared,” Olu Sonola, head of US economics at Fitch Ratings, said, as quoted by news agency AP.

Healthcare, transport sectors lead hiring

Healthcare companies added 37,000 jobs in April, while transportation and warehousing firms added 30,000 positions, according to the report.However, manufacturers cut 2,000 jobs during the month and have shed 66,000 jobs over the past year despite President Donald Trump’s protectionist trade policies aimed at boosting factory employment.Average hourly earnings rose 0.2 per cent from March and 3.6 per cent year-on-year, broadly aligning with the Federal Reserve’s inflation target.The labour force participation rate fell to 61.8 per cent, its lowest level since October 2021, as retirements and tighter immigration policies reduced the number of people seeking work.

Iran war and inflation concerns remain

Economists said the economy has so far weathered the impact of the Iran conflict better than expected, although risks remain if high energy prices persist.“Businesses to some extent are viewing the conflict in Iran as temporary,” Gus Faucher, chief economist at PNC, told AP. “We continue to see solid growth in consumer spending. And we’re seeing strong business investment, particularly around tech and AI.”However, Faucher warned that “the longer conflict in Iran lasts, the higher energy prices go, the longer they stay elevated the greater the drag on the economy.”The Iran war sharply disrupted shipping through the Strait of Hormuz after Iran closed the crucial route following US-Israeli strikes on February 28. The move caused oil prices to surge and raised fears of slower global economic growth.

Fed likely to hold rates steady

The stronger-than-expected jobs report is also expected to reduce pressure on the Federal Reserve to cut interest rates soon.Inflation climbed to 3.3 per cent in March, its highest level in two years, driven largely by rising fuel prices.Friday’s employment data “actually makes it less likely that we see a rate cut anytime soon,” Faucher said, adding that the Fed may prefer to focus on bringing inflation back towards its 2 per cent target before easing borrowing costs.

Millions of car finance payouts hang in the balance as the UK watchdog signalled that its compensation scheme faces further delays, changes or potential collapse ahead of legal battles.

The Financial Conduct Authority (FCA) told motor finance firms to prepare for the possible scenario that its redress scheme will not go ahead at all.

The regulatory body is facing four separate legal challenges from parties who are not happy with its plans for redress, which would result in an estimated average of £829 per payout.

The FCA said it is not clear when the case will be heard but that is unlikely to be before October.

In the meantime, it is in discussions about the “possibility of suspending some elements” of its compensation scheme, while still urging lenders to prepare for payouts.

But the regulator said it was also considering its options should parts of the scheme be quashed by the courts, including proceeding with a revised version or asking lenders to plan for a scenario where “there would be no scheme”.

This could mean lenders need to be ready to respond to complaints from car finance customers individually, rather than under the rules of an industry-wide programme set by the FCA.

“Many people will be frustrated that the legal action will delay payouts due to begin this year,” the FCA said.

“We remain committed to ensuring consumers receive any compensation owed as promptly as possible.”

The FCA set out the final details of its compensation scheme in March, which it estimated could cost the industry about £9.1 billion in total.

It had been expecting millions of claims to be paid out this year and the vast majority settled by the end of 2027.

The financial services arms of carmakers Volkswagen and Mercedes-Benz and the car finance arm of French bank Credit Agricole, as well as Consumer Voice, a group representing consumers, are asking the courts to quash the scheme, arguing the rules are unlawful.

“Between the four separate legal challenges, it is claimed in effect that the FCA’s approach to establishing the schemes has been both unduly favourable to consumers and unduly favourable to lenders,” the watchdog said.

At least one claim alleges that the FCA has breached the rights of lenders under the 1998 Human Rights Act, according to the watchdog.

Despite the uncertainty of the legal cases, the watchdog is still advising consumers to complain directly to their lender if they think they might be owed compensation, which they can do for free using a template letter on its website.