Workers

Independent -    The American job market is showing unexpected resilience this year, rebounding from a challenging 2025 despite persistent economic uncertainty and elevated energy prices exacerbated by the war in Iran. While unemployment is projected to hold steady at a low 4.3% in May, according to FactSet, the pace of job creation remains significantly slower than the boom experienced in the wake of pandemic lockdowns.

This complex landscape has left workers, jobseekers, and employers navigating an awkward "no-hire, no-fire" environment.

This rebound has been partly attributed to substantial tax refunds, a result of Donald Trump’s 2025 tax cuts, which have provided an economic boost, helping to offset the impact of higher energy prices following the United States and Israel's attack on Iran in late February

Diane Swonk, chief economist at KPMG, described the situation as a "labor market purgatory," noting, "Those who have jobs are clinging to them, while those without are left wanting."

This stagnation is particularly acute for young people entering the workforce and for individuals who have been laid off. In April, more than a quarter of the unemployed had been jobless for over six months, a notable increase from less than 20% two years prior.

NY Times - The economy added 172,000 last month, more than economists had expected, while the unemployment rate stayed at 4.3 percent.The robust reading follows other data suggesting that labor demand has found its footing after a year of trade policy swings, immigration enforcement disruption and an exodus from the federal government. With revisions, March and April added 93,000 more jobs than previously reported.

Average hourly earnings grew 3.4 percent from a year earlier, the slowest rate since August 2021. That’s now substantially behind the rate of inflation, although it may reflect the composition of job growth, as more lower-wage jobs have been added in recent months.

The economy added 172,000 last month, more than economists had expected, while the unemployment rate stayed at 4.3 percent.Leisure boom: Growth was led last month by leisure and hospitality, which packed on 70,000 jobs. Some of that may have been early hiring for the World Cup as cities across the country prepared for an influx of tourists. Health care, which has been the steady fuel of job growth over the past several years, added another 35,000 positions.

The federal government was about level, after having lost about 350,000 jobs since peaking toward the end of 2024. But local government surged, adding 55,000 jobs in May, mostly outside education.