Rate Cuts to Bolster Labor Market Amid Persistent Layoffs
ByAinvest
Thursday, Feb 5, 2026 5:41 pm ET1min read
ADP--
The US labor market data shows persistent layoffs, with the biggest amount of job cuts since 2009 in January. Initial jobless claims jumped above expectations, and JOLTS and ADP reports also showed below-consensus results. Despite this, unemployment remains subdued. Rate cuts could help bolster the labor market, particularly in struggling sectors like manufacturing, construction, and small business. AI is also having a limited but notable impact on white-collar industries, with a perception that entry-level jobs are being reduced due to AI taking over some work.
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