U.S. Labor Market Snapshot: Holding The Line, But HeadwindsTo Test Resilience

The U.S. labor market remained resilient through April, but headwinds are likely to intensify. The uncertainty and tariffs' toll, roll-back of immigrant supply, and public-sector spending cuts are key impediments to employment growth. The aging population (especially in the absence of favorable immigration policy) and accelerated cyclical slowdown would plague the labor market in the coming quarters. The Fed?s dilemma is that a conflict is brewing starting in the second quarter between its stable inflation and full employment mandates.

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