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Despite a relatively low 4.2% unemployment rate, the U.S. labor market has become considerably less dynamic than during the post-pandemic hiring boom. Employers are laying off relatively few workers but are also hiring cautiously, while employees are less likely to quit their jobs in search of better wages. Inflation has further reduced the impact of wage gains, and manufacturing employment remains below its January 2025 level despite efforts to expand domestic production. The combination suggests workers have less bargaining power and fewer opportunities to move between jobs even though headline unemployment remains low. Reuters