US Labor Market Cools Ahead of Midterms

The US labor market is showing signs of cooling ahead of the 2026 midterm elections. The unemployment rate remains relatively low at 4.1% in July, but hiring has slowed down, and Americans are expressing significant concerns about the cost of everyday necessities.

While the job market may not be experiencing a traditional crisis like the one seen during the aftermath of the Great Recession, it's not exactly booming either. The Bureau of Labor Statistics reported that nonfarm payroll employment declined by 23,000 jobs in July, and employers made about 5.1 million hires.

The Job Openings and Labor Turnover Survey shows there are still 7.3 million job openings across the country, but hiring has cooled down significantly in professional and business services, with a decline of 188,000 hires.

Americans' concerns about affordability are also growing, with 29% of registered voters naming an economic issue as their top concern, including cost of living or affordability. The price of food, consumer goods, housing, health care, and gasoline is also causing significant concern among Americans.