• The job market is showing revived strength, despite big-name companies announcing layoffs.
• The economy had its best three-month average job growth since early 2024.
• But it's still hard for some to find a job, and inflation outpacing wage growth is a new issue.

From about 8,000 layoffs at Meta to thousands of cuts at Amazon, media outlets have been following high-profile employment changes.

However, cuts at major tech companies this year represent only a sliver of what's happening in the massive job market, filled with millions of workers and unemployed Americans across different industries and business sizes.

That larger job market is showing renewed strength, although there are still some bumps in the road. Overall job growth is more robust, layoffs remain pretty low, and it's not just the healthcare sector keeping it alive. On the downside, wage growth isn't keeping up with inflation anymore, while rising long-term unemployment and low hiring rates suggest it's still hard to find a new job if you're out of work.

The monthly jobs report out on June 5 showed the economy had three straight months of robust gains through May, well above what's needed to keep unemployment steady and the highest three-month average since early 2024.

"This spring really is solidifying that the labor market is returning to a growth pattern," said ZipRecruiter economist Nicole Bachaud. "Businesses are reaccelerating hiring, jobs are growing across different industries, and there's just a general sense of renewed energy in the market that was largely stagnant for most of the last year."

With now five months of data in 2026 from the Bureau of Labor Statistics, we break down how the job market is looking.

Overall job growth is at its strongest level in over two years

Let's first look at the good news.

The US added 172,000 jobs in May, about double the expected gain. The same jobs report showed upward revisions to the previous two months: from a job gain of 185,000 to 214,000 in March and from a gain of 115,000 to 179,000 in April. Together, that makes the highest three-month average since March 2024.

Healthcare, which has been an engine of growth for the past couple of years, isn't the only field propping up the job market. Leisure and hospitality had the highest net gain last month, likely partly driven by World Cup demand, followed by government and healthcare.

While many sectors are adding jobs, Kory Kantenga, LinkedIn's head of economics for the Americas, said there's still a lack of hiring momentum across the board. He said healthcare is the only sector that's largely been consistent over the past few years.

"The success or not for job seekers depends upon what sectors they are searching in and their location," said Mark Hamrick, senior economic analyst at Bankrate.

Meanwhile, the April JOLTS report from the Bureau of Labor Statistics showed job openings surged to the highest rate since 2024, driven by professional and business services. Hamrick said the increase in job openings, muted layoffs and discharges, and low separations, "could set the stage for further acceleration in hiring."

Outside the gold-standard jobs reports from the BLS, private data releases showed the job market's strength. HR services platform Gusto highlighted in its monthly report that small businesses across most sectors added jobs last month, with gains across all US regions. ADP similarly reported that private job gains were strong across firm sizes and in most sectors, with its chief economist, Nela Richardson, saying there's sustained momentum heading into the summer.

The healthy job growth in the job market doesn't mean people should dismiss high-profile layoff news at large companies.

"A thousand people losing their jobs, that's a thousand people," Bachaud said. "That's a very real, tangible number; for those thousand people, it's a very terrible experience." She added that 1,000 job cuts at one company don't move the overall US employment needle.

But wages aren't keeping up with inflation, and white-collar work is stagnating

The economy does have some pain points: ongoing uncertainty from the Iran war, inflation outpacing wage growth, and increased long-term unemployment.

The robust job gains don't mean we are out of the woods from the low-hire job market. "Tech is low-hire, some fire, while other sectors are low-hire, low-fire," Laura Ullrich, the director of economic research in North America at the Indeed Hiring Lab, said.

Finding work is persistently hard in some white-collar fields. The financial activities sector, where employment has generally been falling for about a year, lost 22,000 jobs in May. The information sector, which includes media and tech, has mainly experienced monthly job loss over the past few years.

Data from the Bureau of Labor Statistics showed the hiring rate dipped in April to 3.2%, which Glassdoor's chief economist Daniel Zhao wrote is comparable to the 2010s, when the job market was still recovering from the Great Recession. Amid low hiring, people aren't feeling too confident about finding a job, as seen in the low 1.9% quits rate, compared to a high of 3% during the Great Resignation period of 2021 and 2022.

It's also still hard to get out of long-term unemployment, or being unemployed for at least 27 weeks. Monthslong employment can have financial consequences, especially since many states offer just 26 weeks of unemployment benefits. Of the 7 million unemployed people in the US, 27.5% had been unemployed for at least 27 weeks in May, which Ullrich said is fairly high in an economy with healthy job creation.

"People who have been unemployed are having a really hard time transitioning out of that unemployment, and employers don't really seem to be motivated to pull from that pool," Bachaud said.

Wage growth has recently crossed an unwelcome threshold: it isn't keeping up with inflation. Bachaud said this is especially creating financial strain for middle-income households. Inflation exceeded 4% for the first time since 2023 in May.

"More people are feeling worse off about their financial situation now than a year ago, and affordability is no doubt playing a role," Elizabeth Renter, senior economist at NerdWallet, said in written commentary. "Higher and higher gas and food prices impact households in a dramatic way — these are things we can't easily cut out of our budgets, or even reduce."

How are you doing in today's job market? Did you make a career trade-off, such as taking a lower-paying job because of better work-life balance? Reach out to this reporter to share at mhoff@businessinsider.com or fill out this form about career trade-offs.

• The Federal Reserve will announce its March interest rate decision on Wednesday afternoon.
• It's likely the FOMC will hold rates steady, especially as the Iran war has sent oil markets into chaos.
• The Fed will also release its first economic projections of 2026.

It's been a tumultuous few weeks for the US economy, and the Federal Reserve is paying attention.

The central bank will announce its second interest-rate decision of 2026 on Wednesday afternoon, with CME FedWatch predicting a near-total chance of a rate hold based on market moves. The Fed cut rates three times in the second half of 2025, and has penciled in at least one rate cut for the new year. For consumers, these policy decisions affect inflation, the job market, and borrowing costs.

At the March meeting, Fed leaders will consider the dismal February job growth report, steady inflation rate up through last month, first-quarter business outlook, and the budding energy and oil crisis in Iran. This is also Jerome Powell's second-to-last meeting as chair. He's set to be replaced by ex-Wall Streeter and Trump appointee Kevin Warsh in May if Warsh is confirmed by the Senate.

Here's what you need to know ahead of the decision.

The Fed has a near-total chance of holding rates

It's likely that the Fed will take a conservative approach to monetary policy in March. Holding rates steady could help control inflation. The ongoing Iran war has raised the price of gas and oil — something that's likely to impact everything from plane tickets to grocery costs over the next several months unless the situation improves. The February consumer price index, released March 11, increased 2.4% year over year, the same rise as in January. However, this figure doesn't yet reflect the spike in energy prices, as the overwhelming majority of the data predate the start of the conflict.

The Strait of Hormuz — a major trade throughfare between the Persian Gulf and the Gulf of Oman — has been largely closed by Iran's leadership since early March. The move is cutting off about 20% of global oil production, causing market volatility. Oil prices recently surged past $100 a barrel, and while they've calmed slightly, the key commodity is still far more expensive than it was before the war.

Mark Hamrick, senior economic analyst at Bankrate, told Business Insider the oil shock "creates a real problem for consumers in the broader economy at a time when affordability challenges have already been first and foremost in terms of the major issue that voters and consumers have been railing against."

Oil isn't the only commodity choked off by the closure of the Strait — the hit to fertilizer prices could soon cause food costs to rise if the war continues.

The job market, meanwhile, is showing clear signs of weakness. The disappointing February jobs report showed that US lost 92,000 jobs that month. The unemployment rate also inched up to 4.4%. This is a contrast from January growth and the central bank's optimistic employment outlook at their last meeting.

"The January report saw a really stark reversal from the slow movement in 2025, and there was a lot of expectation that this momentum would continue and keep pace. And that was not the case for February," Nicole Bachaud, an economist at ZipRecruiter, said.

Cory Stahle, an economist at Indeed Hiring Lab, advised people to look at the broader job market trend after the US got one good January report and a bad one in February. Still, as Stahle pointed out, the US basically hasn't created jobs in the past six months.

The Fed will also release its quarterly economic projections on Wednesday, offering a window into its rate decisions for the remainder of the year. With a recent track record of policy disagreements among Fed leaders, it's possible there will be a wide range of predictions.

What the Fed's decision means for consumers

Fed decisions impact mortgage and credit card rates, auto loans, inflation, and job market churn over time. Lower rates may juice a sluggish job market, at the risk of pushing consumer prices higher. Powell and the Federal Open Market Committee will weigh which side of their dual mandate to prioritize. The bank's inflation goal is 2%.

If the Fed holds rates, Americans' finances will remain largely unchanged. Mortgage, auto, and credit rates tend to fluctuate alongside the federal funds, though it takes a pattern of decisions before interest rates change noticeably for consumers. Businesses and job seekers hoping for cheaper borrowing and a hotter labor market might have to wait until later this year.

Powell said at the last Federal Open Market Committee press conference in January that America's economy is coming into the year "on a firm footing," but "policy is not on a preset course, and we will make our decisions on a meeting-by-meeting basis."

Leadership changes are imminent

Trump has nominated Warsh, a former bank executive and central bank governor, to succeed Powell as Fed chair. Warsh has a reputation for hawkish monetary policy and for being tough on inflation, and it's unclear whether he will follow through on Trump's request for more rate cuts.

Matt Colyar, an economist at Moody's Analytics, said the inflation story will be interesting to follow.

"You got a Fed chair tapped because he got the job because of his stated intention of lowering interest rates, and now you're going to get an inflationary shock that's going to push up prices with no real clear end game in sight," Colyar said about the oil shock and spillover effects from the Iran war.

Warsh's nomination is shadowed by tensions between the central bank and the White House. Fed Governor Lisa Cook's case was heard by the Supreme Court earlier this year after Trump accused her of mortgage fraud, which her legal team denies. Powell also announced in January that the Department of Justice launched a probe — which is still ongoing — into the Fed's handling of construction at its Washington, DC, buildings.

The probe sparked major concerns about political pressure on interest rates and Fed independence. Last week, federal judge James Boasberg squashed two subpoenas from the DOJ as part of the probe.

"A mountain of evidence suggests that the Government served these subpoenas on the Board to pressure its Chair into voting for lower interest rates or resigning," Boasberg said.

Senators from across the aisle, including retiring North Carolina Republican Thom Tillis, who sits on the Senate Committee on Banking, Housing, and Urban Affairs, have signaled that they will oppose a confirmation vote for Warsh or any of Trump's Fed picks because of the DOJ probe. These confirmation hearings have not yet been scheduled, though Powell's term ends May 15.

The president hopes to see a rate cut sooner rather than later.

"Where is the Federal Reserve Chairman, Jerome 'Too Late' Powell, today?" Trump posted on March 12. "He should be dropping Interest Rates, IMMEDIATELY, not waiting for the next meeting!"