Hiring in the U.S. experienced a significant slowdown in the past month, particularly in the information and financial sectors. The information services sector saw a loss of 20,000 jobs, while professional and business services and financial activities had declines of 1,000 and 4,000 jobs, respectively. The weak performance of these sectors, which are known for creating higher-wage jobs, could lead to a negative cycle of job losses, declining consumer spending, revenue decreases for businesses, and more job cuts. Nonfarm payrolls only increased by 114,000 jobs, well below expectations, and the unemployment rate rose to 4.3%, its highest since October 2021. However, there were some positive spots, including job gains in health care (55,000), construction (25,000), government (17,000), transportation and warehousing (14,000), and leisure and hospitality (23,000). While the current labor market suggests a slowdown rather than a recession, there are indications of potential further weakness ahead.
