The U.S. labor market has found its footing: A yearlong pattern of whipsawing between job gains and losses is finally breaking, a sign that stabilization is taking hold.

Why it matters: The labor market is holding up despite a wall of headwinds, including an energy shock stemming from the Iran war and the uncertainty that comes with the conflict. So far, the damage that was expected to ripple through hiring simply hasn't shown up.

• But this isn't the gangbusters hiring environment of 2022. It's something steadier and possibly more fragile, with warning signs in the underlying data.
• Still, the firming evident in a range of data lessens the chances for further interest rate cuts this year.

What they're saying: "While we're certainly not in the robust labor market we were a few years ago (and there are present and near-future risks), things seem to be stable for now," NerdWallet senior economist Elizabeth Renter wrote in a note this morning.

• Renter warns that the labor market can't resist the impact of higher energy costs forever: "Businesses only have so much money, and when a growing percentage of it must go to oil and oil-adjacent inputs, there's less to go toward hiring, raising wages and expansion."

By the numbers: Employers added 115,000 jobs in April after a blockbuster gain of 185,000 jobs (revised upward) the previous month.

• Health care has anchored job growth for years, driven by the nation's aging population. But April's gains were more broadly distributed.
• Health care added 37,000 jobs, while employment in transportation and warehousing rose by 30,000 and retail trade increased by 22,000 jobs.
• Those gains could reflect something more economically significant, like healthy consumer demand for goods, rather than the demographic realities pressuring health care services.

What to watch: The information sector lost another 13,000 jobs in April, extending a decline that has now erased 342,000 positions — 11% of the sector — since its peak in late 2022.

• April's losses continue a potential correction of pandemic-era overhiring, the early signs of AI impacting the labor market — or a combination of both.

Zoom out: The pace of hiring reflects a meaningful step up from 2025, when the economy averaged just 10,000 jobs a month. The monthly average so far in 2026 is 76,000.

The big picture: The unemployment rate has held in a narrow range between 4.3% and 4.5% for 10 straight months, reflecting remarkable stability in the indicator that Federal Reserve officials are watching most closely.

• The labor force participation rate — that is, the share of workers with a job or looking for one — fell for the fifth straight month to 61.8%, the lowest since 2021.
• Still, the comparable measure for prime-age workers, ages 25-54, held at 83.8%, just a few ticks away from matching the highest level going back to 2001.

Yes, but: Under the surface, there were signs that more Americans struggled to find sufficient work in April.

• Involuntary part-time work jumped 445,000 in a single month, to 4.9 million, reflecting workers who want full-time jobs but can't find them.

Friction point: The labor market has found steady footing — a dynamic that might keep labor market-related interest rate cuts off the table as inflation runs hot.

• Fed chair nominee Kevin Warsh is set to inherit a jobs market that is neither deteriorating fast enough to force cuts nor strong enough to justify them in the face of sticky inflation.

Americans' attitudes toward the economy keep plumbing new depths, at least according to one long-running survey of consumers' outlook.

Driving the news: The preliminary May reading of the University of Michigan consumer sentiment index fell to 48.2, from 49.8 in April. It is the second consecutive new low in a data series that's been consistently collected since the late 1970s.

• The sub-index of current conditions plunged, while the index of future expectations actually ticked up.
• Survey respondents' expected inflation over the next year slipped to 4.5%, from 4.7%.

What they're saying: "About one-third of consumers spontaneously mentioned gasoline prices and about 30% mentioned tariffs," survey director Joanne Hsu said in the release.

• "Taken together, consumers continue to feel buffeted by cost pressures, led by soaring prices at the pump," she added. "Middle East developments are unlikely to meaningfully boost sentiment until supply disruptions have been fully resolved and energy prices fall."

Between the lines: It boggles the mind that public opinion on the economy would be worse now than it was in past moments of economic crisis — including periods of severe recession, double-digit inflation and pandemic.

• It probably reflects more a baseline level of discontent with the state of affairs than a specific critique of the economy.
• As such, it's probably not a warning sign that consumer demand is on the verge of faltering.

Of note: Other similar measures of economic attitudes, like the Conference Board's consumer confidence index, are low, but they are not scraping all-time lows like the Michigan survey.

• The Michigan survey changed its methodology two years ago to use web-based surveys, which may be a factor in the downshift in reported attitudes.

The bottom line: The weak sentiment numbers are more a curiosity of the Michigan survey and of public opinion in the 2020s more generally — with implications that are more political than economic.