US Labor Market Cooling Ahead of Midterms Amid Affordability Concerns
The US labor market is showing signs of cooling ahead of the 2026 midterm elections. Despite a low unemployment rate of 4.1% in July, hiring has slowed down, and Americans are expressing concerns about everyday costs.
The latest numbers from the Bureau of Labor Statistics show nonfarm payroll employment declined by 23,000 jobs in July. However, there are still 7.3 million job openings across the country.
Employers made about 5.1 million hires in July, but the number fell by 188,000 in professional and business services. This cautious hiring trend indicates a shift away from rapid growth.
A comparison with previous midterm election years reveals that the current labor market is closer to the strong markets of 2018 and 2022 than the jobs crisis of 2010. However, hiring today is less robust.