Part 6/12:
Labor market trends add to the ambiguity. From May through July, the U.S. added an average of only 35,000 jobs per month—a sluggish pace that normally raises alarms. Yet, the unemployment rate remains low at around 4.2%, indicating that the labor market is not in outright crisis. This apparent paradox may be attributable to demographic shifts: declining immigration due to policy restrictions and fears of deportation reduce the available workforce, while a significant portion of the Baby Boomer generation retires, shrinking the labor pool.