Source: Fortune.com
Summary
The US labor market added 115,000 jobs in April, beating economist expectations and marking the second straight month of gains. The unemployment rate held at 4.3%. While the labor market is showing signs of improvement, the “information sector” and finance are still experiencing job losses, with the information sector shedding 13,000 jobs in April. Economists are cautious about attributing these losses to AI, but note that tech jobs remain at record lows despite tech stocks reaching record highs.
Our Reading
The numbers tell one story.
The labor market is inching out of its low-hire, low-fire mode, but the office sector is still struggling. The information sector has lost 16 consecutive months of net job loss, wiping out four years of sector gains. Meanwhile, wages are getting squeezed, with average hourly earnings rising 3.6% over the year, but inflation expected to come in around 4% for April.
The strategy enters a familiar phase: companies are using AI as cover for cost-cutting measures.
Author: Evan Null
