US Job Market Shows Gradual Recovery but Remains Sluggish, Raising Concerns Over Youth Employment

WASHINGTON: The American job market has moved out of a recent slump but continues to grow at a tepid pace, leaving many young people and unemployed workers struggling to find opportunities, according to expected Labor Department data.

The Labor Department is likely to report that the United States added about 105,000 jobs last month, based on a survey of economists conducted by data firm FactSet. While this reflects a modest improvement compared to recent months, it marks a decline from the 115,000 jobs added in April.

Hiring has recovered somewhat in 2026 after a weak 2025, demonstrating resilience despite ongoing economic uncertainty and elevated energy prices linked to the Iran war. The unemployment rate is projected to remain steady at 4.3% in May, FactSet estimates.

However, overall job growth remains significantly below the levels seen during the post-pandemic hiring surge. Analysts describe the current environment as a “no-hire, no-fire” labor market, where both employers and jobseekers face limited mobility.

“Those who have jobs are clinging to them, while those without are left wanting,” said Diane Swonk, chief economist at KPMG, describing the current conditions as a form of “labor market purgatory.”

The slowdown has particularly affected younger workers attempting to enter the workforce, as well as individuals who have been laid off and are struggling to regain employment. Data shows that more than a quarter of unemployed Americans in April had been without work for more than six months, up from less than 20% two years ago.

Despite signs of stabilization, economists warn that the labor market remains uneven, with weak hiring momentum continuing to limit broader economic mobility.