A recent drop in immigration has led to a decrease in the size of the US workforce, but surprisingly kept unemployment rates steady. According to government data released on Friday, the workforce contracted in May due to a significant decline in foreign-born workers entering the labor force. This reduction was the largest since 2020. Despite this, the jobless rate remained at 4.2%, while the number of people out of work rose.
Source: https://www.bloomberg.com/news/articles/2025-06-06/collapsing-immigration-makes-us-jobs-data-harder-to-read-for-fed