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 U.S. economy.

Front-line workers remain central to hiring growth even as many 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. The unemployment rate held steady at 4.3%. Gains concentrated in healthcare, logistics and retail — sectors that depend on operational and customer-facing workers.

Healthcare and social assistance led hiring with 54,000 new jobs in April. Transportation and warehousing added 30,000 jobs. Retail trade contributed another 22,000 positions. Goods-producing industries posted only modest gains, with manufacturing continuing to soften.

The numbers point to a labor market that is still expanding, but 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 elevated levels seen in recent years. Hiring activity improved modestly. Average hourly earnings rose 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 continue to benefit from eCommerce activity and supply chain demands. Healthcare hiring remains elevated as providers address staffing shortages and rising patient volumes. Retail hiring stayed positive despite continued pressure on household budgets.

Those gains matter most for workers in what PYMNTS Intelligence calls the “Labor Economy” — roughly 60 million Americans in essential hourly and operational roles earning $25 an hour or less.

PYMNTS Intelligence’s January Wage to Wallet™ Index found that these 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.

Signs of Stabilization Among Labor Economy Workers

The labor market continues to produce jobs. PYMNTS Intelligence research suggests many workers are viewing the current environment with pragmatism rather than pessimism or confidence.

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

The index found that 29.4% of Labor Economy workers expect their financial situation to improve in 2026. About 43% expect conditions to stay about the same. Another 27.2% expect to fall behind financially this year.

That split reflects a workforce that is employed and earning, but focused on maintaining stability rather than expecting rapid gains. Workers appear to be recalibrating toward consistency and predictability after years of inflation volatility and economic disruption.

Job Security Concerns Persist Even as Hiring Grows

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

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

Many workers are also paying closer attention to company stability and labor market mobility. About half of Labor Economy workers expressed concern about layoffs at their employer. More than 25% said they are uncertain about their company’s future.

Those concerns have not yet 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 focus on financial resilience.