U.S. Strain Rises as Job Gains Skew to Healthcare, Walmart Cuts Staff

U.S. labor market data show average monthly job growth of about 55,000 over the past six months, with roughly 98% of those jobs—approximately 54,000 per month—coming from the healthcare and social assistance sector. Private‑sector employment in manufacturing, construction, transportation and other productive areas added little to no net jobs during the same period.

Consumer price inflation remained above the Federal Reserve’s 2% target, with the CPI up 3.8% year‑over‑year in April and overall price increases of about 30% since early 2020. Producer price inflation also rose, and household debt reached $18.78 trillion, while auto loan and credit‑card delinquencies hit record levels.

Amid this backdrop, Walmart announced a round of layoffs, adding to concerns about the strength of the broader economy. Although the U.S. added 115,000 jobs in April, the majority were in health‑care and social assistance, prompting analysts to question the sustainability of the hiring surge and its impact on consumer confidence.