Labor Economy Workers Keep the Jobs Market Moving

The labor market added jobs at a moderate pace in April, but the latest employment data also underscored a reality that has increasingly defined the economy in the United States.

Font-line workers remain central to hiring growth even as many workers continue to balance cautious optimism with concerns about long-term stability.

The Bureau of Labor Statistics said in a Friday (May 8) press release that the economy added 115,000 jobs in April following a revised gain of 178,000 in March, while the unemployment rate held steady at 4.3%. The gains remained concentrated in service-oriented industries tied to healthcare, logistics and retail activity, reinforcing the importance of operational and customer-facing, and thus front-line, workers to the broader economy.

Healthcare and social assistance led hiring with 54,000 new jobs in April, while transportation and warehousing added 30,000 jobs and retail trade contributed another 22,000 positions. Goods-producing industries, meanwhile, posted only modest gains, with manufacturing and several industrial categories continuing to soften.

The numbers point to a labor market that is still expanding, albeit at a slower and more selective pace than during the post-pandemic hiring surge. Job openings as a share of employment fell to 4.1% in March, below the elevated levels seen in recent years, although hiring activity itself improved modestly. Wage growth also remained steady, with average hourly earnings rising 3.6% year over year, slightly ahead of inflation.

Front-Line Industries Continue to Anchor Hiring

The concentration of hiring in healthcare, transportation and retail reflects how much demand remains tied to sectors requiring in-person labor and operational execution.

Transportation and warehousing, in particular, continue to benefit from ongoing eCommerce activity and supply chain demands, while healthcare hiring remains elevated as providers continue to address staffing shortages and rising patient volumes. Retail hiring also remained positive despite continued pressure on household budgets and discretionary spending.

Those gains are especially meaningful because they benefit workers in what PYMNTS Intelligence calls the “Labor Economy,” which is approximately 60 million Americans employed in essential hourly and operational roles earning roughly $25 an hour or less.

PYMNTS Intelligence’s January Wage to Wallet Index found that those workers account for more than one-third of the U.S. workforce and generate roughly $1.7 trillion in annual spending. Their financial health increasingly shapes broader trends in consumer spending, payments activity and economic resilience.

Some Stabilization

While the labor market continues to produce jobs, PYMNTS Intelligence research suggests many workers are viewing the current environment through a pragmatic lens rather than with outright pessimism or confidence.

The Wage to Wallet Index indicated that Labor Economy workers remain less optimistic about their finances than higher-income workers, but sentiment has stabilized after months of volatility.

The index found that 29.4% of Labor Economy workers said they expect their financial situation to improve in 2026, while roughly 43% expect conditions to remain about the same. Another 27.2% said they expect to fall behind financially this year.

That split reflects a workforce that is still employed and generating income, but increasingly focused on maintaining stability rather than expecting rapid financial gains.

In practical terms, workers appear to be recalibrating toward consistency and predictability after several years of inflation volatility and economic disruption.

Job Security Concerns Persist Alongside Hiring Growth

Even as hiring continues, workers remain mindful of how technology and automation could reshape employment opportunities over time.

Roughly two-thirds of Labor Economy workers worry their professional skills will remain valuable as technology evolves, compared to 73.7% of non-Labor Economy workers, the index revealed. There is a growing awareness that operational workforces are increasingly being affected by automation and artificial intelligence-driven tools.

The index also found that many workers are paying closer attention to company stability and labor market mobility. About half of Labor Economy workers expressed concern about layoffs at their employer, while more than 25% said they are uncertain about their company’s future.

At the same time, those concerns have not translated into broad labor market deterioration. The unemployment rate remains relatively contained.

Hiring continues in essential sectors, and wages are still outpacing inflation, albeit modestly.

Front-line workers remain in demand, but many are approaching the economy with measured expectations shaped by rising living costs, technological change and a growing emphasis on financial resilience.