The U.S. labor market is “stable and, based on the current unemployment rate of 4.2% and a range of other measures, is most likely close to the central bank's goal of maximum employment.”
That was the message delivered in a prepared statement to the Central Bank of Iceland by Federal Reserve Governor Adriana Kugler last week, according to Reuters.
Read more via Reuters
U.S. organizations are facing "unprecedented levels of uncertainty", and C-suite executives are "taking proactive steps to adapt," according to a new survey by Gartner.
Highlights from Gartner's poll of 600 C-suite executives:
In Q2 2025, 58% of C-suite executives expect "supply chain disruptions … due to tariffs," while 42% are "bracing for reduced demand" and "41% expect accelerated inflation to impact their operations."
50% of C-suite executives polled by Gartner are "considering cuts to their function in the second quarter of 2025."
38% of C-suite executives are “focusing on dynamic changes to their products, go-to-market strategies, or geographic sales mix.”
Read more via Gartner
Small business owners are pulling back on hiring and reducing investments as a result of “unpredictable trade policy and a loosening labor market," according to the latest survey by the National Federation of Independent Business (NFIB).
Highlights from the NFIB's latest survey:
In April, the small business optimism index decreased to 95.8, down from 97.4 in March and "below the long-term average of 98."
"Unpredictable trade policy" and a "loosening labor market" are "weighing on" small business owners, prompting them to reduce investment and hiring.
Uncertainty continues to be a major impediment for small business owners in operating their business in April, affecting everything from hiring plans to investment decisions."
Read more via The Wall Street Journal
The "majority of employers" expect the Trump administration's policies around DEI and immigration will "impact their businesses during the first year of the Trump administration," according to a new report published by Littler.
Highlights from Littler's Annual Employer Survey Report:
Most employers anticipate the administration's DEI policies will impact their organization: "Nearly 85% of employers" believe "changes to workplace regulations and policies surrounding IE&D will impact their businesses during the first year of the Trump administration."
There's a heightened level of concern around litigation around discrimination and DEI: 63% of executives are concerned about "litigation relating to discrimination and harassment claims." 45% of respondents overall, and 60% of large organizations, voiced concern over litigation around DEI. That's a significant jump from last year, when just 24% expressed concern.
Still, almost half of organizations aren't planning further DEI rollbacks: It's worth noting that 45% of respondents said their organizations are "not considering new or further rollbacks of their IE&D programs in response to executive orders issued by the Trump administration." 55% of organizations are “considering changes to some extent, with only 7% doing so to a large extent.”
[I]t’s unlikely that IE&D will disappear any time soon. It remains an important talent recruitment and retention strategy at many organizations.”
Over half of organizations are concerned about staffing challenges related to the Trump administration's immigration policies: 75% of employers say the administration's changes in immigration policy will impact their organization. 58% of respondents “expressed concern about potential staffing challenges resulting from the administration’s immigration policies.”
The findings illustrate that topics dominating the headlines—including immigration and inclusion, equity and diversity (IE&D)—are creating significant challenges for employers both from a workforce management and legal perspective."
Read more via Fortune, Littler
Some world leaders are calling it a "once-in-a-century brain gain opportunity." According to The New York Times, while the Trump administration is cutting federal funding for scientific institutes and universities, countries across the globe are looking to seize the opportunity to lure U.S. scientists and researchers away.
Europe has long struggled with how to attract researchers, given that "salaries tend to be much lower in Europe".
The Trump administration's policies and funding cuts have many researchers considering whether they want to remain in the U.S. According to a Nature poll, three-quarters of Ph.D. or postdoctoral students in the U.S. "said they were considering leaving the country because of the Trump administration’s policies."
France is promising to "spend $113 million on a program to attract American researchers."
Spain is "budgeting an additional €45 million to lure scientists" from the U.S.
Denmark is using Instagram to post appeals to American researchers in an effort to "fast-track 200 positions for researchers over the next three years."
Norway, the United Kingdom, Canada, Austria, Australia and Portugal are also mounting efforts to attract "disgruntled" U.S. scientists and researchers.
And Ireland, Belgium, South Korea and China are also talking about "starting programs directed at researchers, scientists and students in the United States."
Read more via New York Times
According to Indeed, foreign job seeker interest in U.S. roles has declined significantly over the past year.
Foreign interest in U.S. jobs has declined by 29% over the past year.
Indeed notes that the decline in interest from foreign job seekers comes as "immigration policies tighten globally and the U.S. labor market cools."
The decline could have a significant impact on certain sectors that "depend heavily on immigrant labor," such as healthcare and construction.
Foreign interest in U.S. jobs peaked in August 2023 and has "rapidly dropped" since the 2024 presidential election.
This drop could have real economic consequences, especially for sectors like healthcare and construction that depend heavily on immigrant labor. Fewer clicks today could mean fewer workers tomorrow, potentially deepening labor shortages in industries already under strain.”
Read more via HR Dive, Indeed
Amid the ongoing global trade war, Puerto Rico government officials are attempting to "try and convince international companies to relocate their manufacturing plants to the island, where they would be exempt from tariffs," according to news reports.
U.S. federal funds currently account for "more than half of Puerto Rico's budget," and Puerto Rico could be facing significant funding cuts by the Trump administration.
Puerto Rico officials call the "tariff issue" a "great opportunity".
Relocations by companies to Puerto Rico could boost the "shaky economy." The manufacturing sector accounts for "nearly half of its gross domestic product," according to the Associated Press.
Officials say they have "identified between 75 to 100 companies that might consider relocating operations to Puerto Rico given the ongoing trade war."
Read more via Associated Press
Last week, President Trump signed a "sweeping" executive order his administration says will “cut the price of drugs in the U.S. up to 90%.”
What does the order say?
The executive order stresses that while the U.S. has "less than five percent of the world’s population," the U.S. "funds around three quarters of global pharmaceutical profits." The administration says there is an "egregious imbalance" between what drug manufacturers charge in foreign markets and what they charge U.S. consumers.
The order calls on the Department of Health and Human Services (HHS) to “tie what government pays for drugs to the lowest prices paid by other economically advanced countries.”
Read the Executive Order
Experts say the order is "vague" and short on details:
Experts say the executive order is "vague with little detail on implementation."
What's more, experts say it remains “unclear what — if any — impact the … executive order will have on millions of Americans who have private health insurance.”
The order is likely to face legal challenges:
Experts say the order is “certain to face legal challenges from the pharmaceutical industry.”
"Efforts to reduce the price of drugs" could have a negative impact on the industry's ability to innovate:
The pharmaceutical sector is already pushing back on the order.
Pharmaceutical companies have "long argued" that efforts to cut profits will impact the industry's ability to innovate and develop new drugs.
Importing foreign prices from socialist countries would be a bad deal for American patients and workers. It would mean less treatments and cures and would jeopardize the hundreds of billions our member companies are planning to invest in America."
Read more via Fierce Pharma, Associated Press
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India: According to new data from foundit's Insights Tracker, white-collar recruitment in India "continued to show strength in April 2025, with an 18% year-on-year (YoY) increase in hiring activity." India experienced hiring growth "across all 27 monitored industries on an annual basis, with healthcare, consumer electronics, and media & entertainment emerging as top-performing sectors." The biggest surge was in consumer electronics, which saw a "70% year-on-year" increase. (SIA)
Japan: Almost half (45%) of workers are engaged in "quiet quitting," according to a new survey by Mynavi. Researchers say "quiet quitting" -- or "doing just enough at work" without exerting any extra -- is "becoming the new norm" in Japan. Over 70% of workers "who identified as quiet quitters said they intended to continue the practice." (South China Morning Post)
United Kingdom: New surveys suggest increasing "gloom" when it comes to the UK labor market. UK employers are facing increased uncertainty and decreased confidence, impacting hiring plans. The Chartered Institute of Personnel and Development's "gauge of employment intentions for the next three months fell in the latest quarter from +13 to +8 - a record low, excluding the COVID-19 pandemic." (Reuters)
