On June 5, Brent Schutte, Chief Investment Officer of Northwestern Mutual Wealth Management, stated that the U.S. labor market has moved away from the weak and limited growth experienced in 2025, showing signs of recovery and broader expansion. In 2025, the non-cyclical healthcare and social assistance sectors contributed to all job growth. The diffusion index, which had been below 50 for nine months in 2025, has rebounded to above 50 in the last five months, reaching 54.4 in May. The good news for consumers is that the labor market is strong and employment is stable. However, concerns about future spending arise as real wages are experiencing negative growth, with average hourly earnings up 3.4% year-on-year and inflation at 3.8%. The Federal Reserve may lean towards a wait-and-see approach, but its focus is likely to shift towards the inflation aspects of monetary policy.