Americans are entering 2026 with diminished confidence about the state of the labor market, after months of slow hiring and a tide of layoff announcements brought 2025 to a troubling close.
Why It Matters
Weakening sentiment about the U.S. labor market, recorded now in a number of surveys, reflects concerns about both job losses and sluggish jobs growth. Successive payroll reports have shown that employers remain cautious on hiring, and unemployment now sits at 4.4 percent according to the latest figures from the Department of Labor, compared to 4.0 percent when Donald Trump returned to office in January.
Against this backdrop, the administration has faced growing scrutiny over its stewardship of the economy and some have warned that, without a major improvement in either economic conditions or messaging, the Republican party could face an electoral reckoning in this year’s midterms.
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