The US job market seems to have returned to normal after the chaos caused by the pandemic. Monthly job gains remain stable, labor demand and supply are balanced, and there haven’t been many layoffs. The economy and spending have also held up well. The labor market is no longer overheated and can maintain steady but slower growth. However, there are risks, and the labor market could weaken rapidly if there are unexpected shocks or high interest rates for an extended period. The upcoming July jobs report will provide more insight into the labor market’s strength. Factors to watch include the unemployment rate, labor force participation rate, number of people working, wage growth, and industries hiring. The job market’s growth has not been broad-based, with health care, government, and leisure and hospitality leading the way while other sectors struggle.
