US Labor Market Cools Ahead of Midterm Elections

The US labor market is showing signs of cooling as Labor Day arrives this year. The unemployment rate remains relatively low at 4.1%, but hiring has slowed, and Americans continue to express significant concerns about the cost of everyday necessities.

According to the Bureau of Labor Statistics, nonfarm payroll employment declined by 23,000 jobs in July, which may indicate a cautious approach by employers.

The latest Job Openings and Labor Turnover Survey shows there are still 7.3 million job openings across the country, but the number of hires was little changed from the previous month.

Looking at past midterm election years, 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 than in those years.