[REVISION HISTORY]

US labor volatility and shifting consumer sentiment

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2026-09-16 18:16 UTC → 2026-10-05 01:05 UTC · added ~~removed~~

The US economic landscape continues to show signs of deceleration across labor and consumer sectors. Following a period of volatile job growth, April data indicated a slowdown with 175,000 jobs added, down from a revised 315,000 the previous month. During this period, the unemployment rate rose from 3.8% to 3.9%, while annual compensation growth moderated to 3.9%. Gains were noted in healthcare, social assistance, manufacturing, and construction, though the information sector saw job losses and its slowest wage growth since August 2021. Consumer activity has also weakened. July retail sales fell by 0.6%, marking the first decline in nine months and defying forecasts of a modest increase. This contraction was attributed to a fade in federal tax refund boosts, reduced spending following major promotional events, and lower gasoline receipts. Recent data indicates further labor market volatility. June saw job growth stall with only 57,000 jobs added, and the unemployment rate slipped to 4.2% as workers left the labor force. July data reported a loss of 23,000 jobs, with earlier months revised downward by 103,000, and the unemployment rate edging to 4.1%. Despite these declines, consumer sentiment showed signs of improvement, with the University of Michigan’s index jumping to 55.2. By August, the job market showed signs of resilience, adding 162,000 jobs and exceeding economist forecasts of 65,000. This growth included notable gains in the manufacturing sector and an increase in the workforce participation rate. Blerina Uruci, chief U.S. economist at T. Rowe Price, described the report as “very good,” suggesting financial conditions may not be as tight as feared. Consumer resilience also emerged in August as retail sales rose 1.2%, significantly exceeding expectations of 0.7% to 0.8%. This rebound follows the July contraction and was driven by broad-based demand, including online shopping, electronics, and restaurants. In August, U.S.

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