U.S. Job Seekers Face Rising Difficulty as Labor Market Softness Hits 5-Year Low

According to the Conference Board, on July 28, the U.S. labor market differential index fell to 3.1 percentage points in July, marking its lowest level since February 2021. The index, which measures the gap between respondents saying jobs are plentiful and those reporting difficulty finding employment, has declined for three consecutive months.

The share of consumers finding jobs plentiful dropped to 24.6%, while 21.5% reported jobs are hard to find. Economists note the softening reflects mounting challenges for new labor market entrants and job seekers, rather than increased risks for currently employed workers. Initial jobless claims remain historically low at 187,000 for the week ending July 18.