The US labor market is experiencing a mixed picture, with private-sector layoffs at historic lows but a bleak outlook for those without jobs or unhappy with their positions. A recent payroll gain of 147,000 in June was driven by just two sectors – education and healthcare – while hiring in other areas remained unchanged.
The “frozen job market” trend continues, exacerbated by the rise of AI, which is leading employers to experiment with productivity. Meanwhile, data released this week shows a decline in layoffs but a significant drop in new hires, indicating that it’s taking longer for jobless workers to find employment.
Experts say the complex jobs market is characterized by low dynamism, churn, and hiring, leaving many employers hesitant to lay off workers until they see signs of recession. The number of workers collecting unemployment benefits is at its highest level since 2021, suggesting a prolonged period without new jobs.
The mixed signals from the labor market highlight the need for a clearer picture on how it will recover. With a low-fire rate and solid hiring, some may view the market as strong, but others see a weak job market with limited opportunities for new entrants to the workforce or those unhappy with their positions.
Source: https://www.axios.com/2025/07/06/unemployment-job-market-education-health-care