Wells Fargo Says U.S. Labor Demand Has Been Largely Steady With No Clear Reacceleration

Wells Fargo’s economics team said U.S. labor market conditions have continued to stabilize after a low point in 2025, but recent data did not show a clear reacceleration in labor demand. According to Jin10, the team said initial jobless claims have remained low, and employment PMI readings from regional Federal Reserve banks indicated hiring activity picked up slightly in June. However, the economists noted that other recent indicators have softened. Since spring, job postings and ADP weekly hiring measures have declined, while small business hiring plans fell in May to a new low for the current cycle. Overall, Wells Fargo said the combined data suggested labor demand has been broadly stable, without an obvious renewed acceleration.