US job growth is still sluggish, yet signs point toward an upcoming rebound
Federal Reserve Focuses on Employment Trends
One of the primary issues currently facing the Federal Reserve is the ongoing softness in the job market over the past year, with a notable decline during the latter half. This downturn played a key role in the Fed’s choice to restart interest rate reductions in September 2025.
While sluggish job creation had long been evident in industries that produce goods, it was only in the second half of the year that a slowdown in hiring within the service sector became clear, as illustrated in the accompanying chart. Recently, however, there are indications that employment within services is beginning to recover.
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