
America has two labor markets now
Why it matters: Welcome to the low-hire, low-fire labor market. Private-sector layoffs are at historic lows, but that masks a dreadful outlook for unemployed workers or those unhappy with their current positions.
Driving the news: The labor market surprised in June with a better-than-expected payroll gain of 147,000, the government said on Thursday.
But a whopping 85% of those job gains came in just two sectors, according to calculations by Mike Konczal, a former Biden economic official: education and health care.
Hiring in other sectors — including professional and business services, a catch-all category for white collar jobs — was little changed, the government said.
The big picture: That continues the "frozen job market" trend that has plagued the economy in recent years. The trend is being exacerbated by the rise of AI, as employers experiment with how to make their workforces more productive.
Separate data released this week showed the number of layoffs fell by 188,000 in May, hovering above multi-decade lows.
But the number of people hired into new jobs also fell by 112,000, to a rate significantly below its pre-pandemic levels.
The number of workers continuing to collect unemployment benefits is at the highest level since 2021, a sign that it is taking jobless workers longer to find a job.
What they're saying: "We're in a complex jobs market —it's not falling apart but the lack of dynamism, the lack of churn and the lack of hiring has been punctuated in the first half of the year," says ADP chief economist Nela Richardson.
"Many employers are loath to lay off workers until they see the whites of the eyes of a recession, having had such problems finding suitable workers in the first place," David Kelly, chief global strategist at J.P. Morgan Asset Management, wrote in a recent note.
The bottom line: If you look only at how many Americans are losing their jobs, this appears to be a pretty terrific labor market. If you look only at how many are being hired for new jobs, it is the weakest in years.

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Politico
37 minutes ago
- Politico
Postmortem of a megabill
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Business Insider
42 minutes ago
- Business Insider
Federal lawyers face a very different job market
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Newsweek
an hour ago
- Newsweek
Dog Owner Tries To Work From Home but There's a Problem: 'Cuddle Hours'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A dog owner has left the internet in hysterics after showing how difficult it is to try and get anything done with a Staffordshire bull terrier around. Working from home is a great way to stay focused and avoid disruptions from noisy coworkers all the time. That is, unless you have a staffie like Callie, who just loves to interrupt her owner whenever she wants attention and cuddles. Callie's owner shared a hilarious video on the dog's dedicated TikTok account (@calliethestaff) showing just how clingy her adorable pup can be. Whenever the owner tries to get work done, respond to emails, or format documents on her laptop, Callie is sure to find a way to get involved. And by get involved, that means stop what her owner is doing to get all the attention put on her instead. A stock image of a dog interrupting its owner while trying to work on a laptop. A stock image of a dog interrupting its owner while trying to work on a laptop. Kiwis/Getty Images The hilarious clip, shared on June 28, has delighted internet users and generated over 325,200 views and more than 64,100 likes at the time of writing. Alongside the amusing clip, the TikTok caption jokes: "She's innocent your honor." Following the COVID pandemic, millions of office workers across the world had to get used to working from home practically overnight. While many companies are overhauling their remote work policies and encouraging workers to return to the office, it seems that Americans are divided on which they prefer. A survey by YouGov in 2024 found that, if given the choice, 36 percent of Americans would prefer to work fully remote, while 27 percent would choose to be office-based. The hybrid model (a combination of office and remote working) was preferred by 28 percent of Americans. When it comes to working remotely, the biggest draw is how much time people can save commuting between their home and the office. That was cited by 68 percent of respondents. Among the other reasons, 64 percent of people said they can save money on commuting costs, and 43 percent said they're more productive at home. As for people like Callie's owner, pets are a big factor for many remote workers. According to the YouGov poll, 28 percent said they prefer remote working because they have pets, and it allows them to stay at home with them. While Callie might prefer this, her owner may think otherwise. Since the clip was shared online in June, TikTok users have lauded Callie's hilarious disruptions. This has led to over 360 comments on the viral post at the time of writing. One comment reads: "Why would you work during cuddle hours?" Another person wrote: "Your laptop is in her way of getting cuddles and attention btw." Another TikTok user added: "Sorry can't do work today, my pup is pestering me." While one commenter joked: "She's just doing the lord's work. You should thank her with more treats." Newsweek has contacted @calliethestaff via TikTok for comment. We could not verify the details of the video. Do you have funny and adorable videos or pictures of your pet you want to share? We want to see the best ones! Send them in to life@ and they could appear on our site.