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A season of change: fewer openings, steadier footing. Employers are facing a labor market that continues to grow, but at a much slower pace than expected. Payroll gains came in well below forecasts, revisions reduced previously reported job growth, and hiring activity remains uneven across industries. At the same time, labor force participation increased and layoffs remain limited, creating a cautious rather than contracting market.

August marked a meaningful rebound for the labor market, with hiring activity recovering from the softer pace seen earlier in the summer. The latest data suggests employers are continuing to add talent, reflecting steady business demand and renewed confidence in key areas of the economy.

July's jobs report suggests the labor market is losing some momentum, but it's far from falling off a cliff. Employers cut 23,000 jobs during the month, and revisions to May and June removed another 103,000 jobs from previously reported totals. While the unemployment rate ticked down to 4.1%, labor force participation also declined to 61.4%, indicating that the lower unemployment rate doesn't necessarily reflect stronger hiring activity.

June 2026 marked a meaningful deceleration in U.S. hiring. Payroll growth came in far below consensus expectations, and downward revisions to April and May removed another 74,000 jobs from the spring hiring picture. Even so, the unemployment rate moved lower rather than higher, suggesting the labor market is slowing in a “low-hire, low-fire” pattern rather than entering a broad-based contraction.