Diane Swonk

The U.S. job market is showing signs of improvement with an average of 114,000 jobs added monthly in 2024, a notable increase compared to 10,000 jobs monthly in 2025. The previous hiring slowdown was linked to immigration enforcement under President Trump and fluctuating tariff policies, but recent job gains span sectors like healthcare, hospitality, and construction.

The U.S. jobs report showed 172,000 jobs added in May, marking the third consecutive month of job gains. The labor market remains strong despite concerns over the Iran war, rising prices, and artificial intelligence. Diane Swonk, chief economist at KPMG, provided analysis on the report.

The U.S. job market added 172,000 jobs in May, with an unemployment rate of 4.3%, showing resilience despite the Iran war and high energy prices. Job growth was broad-based, including gains in local governments, restaurants, and healthcare, though wage increases remained modest and inflation concerns persist.

US employers added 172,000 jobs in May, with the unemployment rate remaining at 4.3%. Job growth was broad-based across sectors like local governments, restaurants, and healthcare, despite high energy prices from the Iran war. Wage gains were modest, aligning with the Fed's inflation targets, though challenges like long-term unemployment and a stagnant job market persist.

US employers are expected to add 105,000 jobs in May 2026, showing a tepid recovery in the labor market amid high energy prices from the Iran war. Healthcare is a key sector driving job growth, while overall hiring remains below pre-pandemic levels, leading to a stagnant 'no-hire, no-fire' labor environment.