Is the Labor Market Gaining Strength?

Summary

WSJ What’s News PM Edition – Episode Summary

Episode Title: Is the Labor Market Gaining Strength?
Date: May 8, 2026
Host: Alex Osola (Alec Zosalev)
Main Theme:
This episode examines the unexpected strength of the U.S. labor market in April 2026, the Federal Reserve’s potential next moves, and ripple effects across politics, business, and global affairs. The episode also covers major business deals (Apple-Intel, Stellantis-Leap Motor), recent court decisions affecting political power in Virginia, and breaking political news from Washington and abroad.

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1. The Labor Market Surges: Signs of Strength—But Is It Enough?

Key Segment: [01:00] – [03:45]

• Headline Numbers:

  • The U.S. economy added 115,000 jobs in April—well above expectations, marking a second consecutive month of strong gains.
  • The unemployment rate held steady at 4.3%.

• Analysis by Xiaodang Chao, WSJ Economics Reporter:

  • "The strong number from today is a glimmer of hope that it will become easier for those without a job to find a job. That said, I think economists will probably want to see job gains for a few more months before they feel like conditions have really turned a page.” (Xiaodang Chao, [01:51])
  • Two months of improvements offer optimism, but economists remain cautious, citing uncertainties like the ongoing Iran war and recent tariffs.
  • Indication that businesses feel more stable despite these headwinds—some are cautiously expanding hiring.

• Sector Highlights:

  • Healthcare and social assistance were the primary drivers, with healthcare alone adding 54,000 jobs in April.
  • A notable (and surprising) area of growth: retail jobs, especially in supercenters and warehouse clubs.
  • “Jobs are coming through in more sectors than just healthcare.” (Xiaodang Chao, [02:36])

• Implications for the Federal Reserve:

  • The ongoing tension between supporting job growth and managing inflation persists.
  • “Now that we've had this strong report, I think it puts more focus on the inflation data, which we'll see next week from the Labor Department for the month of April. We know inflation is drifting up instead of down because of tariffs and also because of the effects of the Iran war.” (Xiaodang Chao, [03:16])
  • The Fed’s future decisions may hinge more on emerging inflation numbers now that employment seems to show resilience.

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2. Major Corporate Deal: Apple and Intel Strike a Landmark Chip Partnership

Key Segment: [03:49] – [05:19]

• Deal Details:

  • Apple and Intel have reached a preliminary agreement for Intel to manufacture some chips for Apple devices.
  • Intel stock soared 14% on the news, while Apple gained 2%.
  • The deal could help Apple address chip shortages, meeting high consumer demand for devices.
  • It's pivotal for Intel, which is seeking a comeback after lagging behind TSMC and Samsung in the chip industry.

• Government's Role:

  • The deal was catalyzed by the Trump administration, which acquired a 10% stake in Intel last summer and played a key role in negotiations.
  • “The government played a key role in bringing Apple to the table for this deal, the latest chapter in Intel's comeback story.” (Host, [04:45])

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3. Stellantis Partners with Chinese EV Company Leap Motor: A European Test Case

Key Segment: [05:19] – [06:18]

• Deal Overview:

  • Stellantis (Jeep, Chrysler, Fiat, Ram) will use its Spanish factories to produce electric vehicles in partnership with Chinese automaker Leap Motor.
  • The deal is significant as it marks the first major collaboration between a Western automaker and a Chinese EV company in Europe.

• WSJ Autos Reporter Steven Wilmot's Take:

  • “The Chinese side wants access to the European market, and local production assets are a key part. Stellantis ... desperately needs to cut costs. So a good way of doing that is to essentially rent out the spare space to Leap Motor.” (Steven Wilmot, [05:24])
  • The partnership presents short-term gains for both sides but raises concerns about increased Chinese competition for European manufacturers.
  • “This is kind of the first closely watched test case of how this kind of arrangement might shake out.” (Steven Wilmot, [06:13])

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4. Market Reaction: Stocks Hit Record Highs

Key Segment: [06:18] – [07:07]

• Strong earnings, chip sector news, and jobs data propelled markets:
  • Nasdaq closed up 1.7%, its 11th record for 2026.
  • S&P reached another record, continuing a six-week winning streak.
  • The Dow was essentially flat.

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5. Virginia Supreme Court Ruling Alters 2026 Election Landscape

Key Segment: [07:34] – [09:11]

• Court Decision:

  • Virginia Supreme Court struck down a Democrat-drawn map that would have favored Democrats in a 10-to-1 split, maintaining the current even-split map instead.

• Ken Thomas, WSJ National Political Reporter:

  • “This is a setback for Democrats, but I don't think there's an expectation that this decision favors Republicans in the big picture in terms of who will control the House after the November midterm elections.” (Ken Thomas, [08:10])
  • About 30–35 truly competitive House seats remain, with Republicans defending many.

• Broader Redistricting Moves:

  • Tennessee's new map, signed this week, eliminates a Democrat-held seat around Memphis.
  • Similar efforts are underway in South Carolina and Alabama to reshape districts in ways that could favor Republicans.
  • “We could certainly see Republicans change the map to benefit their abilities of winning more seats in the fall elections.” (Ken Thomas, [08:44])

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6. White House News and International Developments

Key Segment: [09:11] – [10:45]

• White House Shakeup:

  • Exclusive: President Trump has signed off on a plan to fire FDA Commissioner Marty McCary over policy disagreements and leadership turnover.
  • Under pressure, the FDA recently approved flavored vapes more quickly.

• Iran Conflict:

  • U.S. forces struck two empty Iranian-flagged oil tankers attempting to breach a naval blockade.
  • Secretary of State Marco Rubio threatened further action against Iranian vessels.

• Ukraine-Russia Ceasefire:

  • Moscow and Kyiv have agreed to a three-day ceasefire and prisoner exchange coinciding with Russia’s Victory Day.

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7. Notable Quotes & Memorable Moments

• “It’s a glimmer of hope… but a little bit early to say that companies are shrugging off the Iran war or even completely shrugging off tariffs.” — Xiaodang Chao ([01:51])
• “The Chinese side wants access to the European market, and local production assets are a key part.” — Steven Wilmot ([05:19])
• “Democrats' loss in Virginia follows a Supreme Court decision limiting the use of race in congressional maps that has touched off a new record round of redistricting in the South.” — Host ([08:35])
• “President Trump has signed off on a plan to fire FDA commissioner Marty McCary. That plan isn't yet final and could change.” — Host ([09:11])

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8. Important Timestamps

• [01:00] – Jobs report highlights and analysis with Xiaodang Chao
• [03:49] – Apple-Intel chip deal details
• [05:19] – Stellantis-Leap Motor EV partnership breakdown
• [06:18] – Stock market record closes
• [07:34] – Virginia Supreme Court ruling impacts congressional map
• [09:11] – Trump preparing to fire FDA commissioner; Iranian tanker strike; Ukraine-Russia ceasefire

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Overall Tone & Style:
The episode is brisk, tightly reported, and grounded in market realities. Interviewees and hosts maintain an analytical yet accessible tone, emphasizing the connection between numbers, policy, and lived economic experience.

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This summary encapsulates all key news and discussion points from the episode, providing a clear, structured resource for listeners and non-listeners alike.

Transcript

[A]

Hey, it's Ryan Knudson, host of the Journal Podcast, our show about money, business and power. If you're looking for more deeply reported stories like we share every day, consider becoming a subscriber to the Wall Street Journal. Visit subscribe.WSJ.com TheJournal all lowercase to subscribe now.

[B]

April's job numbers blow past expectations, but we may not be out of the low hire, low fire labor market quite yet. Plus, what a decision by the Virginia Supreme Court means for Democrats hopes of retaking the House in the midterms.

[C]

While this is certainly something that makes Democrats winning back control of the House much more difficult, I don't think this decision favors Republicans in the big picture.

[B]

Why is that? We'll get into it. And in a big win for intel, it will supply some chips for Apple

[D]

devices, a deal that was pushed by the Trump administration.

[B]

It's Friday, May 8th. I'm Alex. Alec Zosalev for the Wall Street Journal. This is the PM edition of what's News, the top headlines and business stories that move the world today. Let's start the show with some good news. US employers added 115,000 jobs in April, blowing past analyst expectations for the second month in a row. Meanwhile, the unemployment rate stayed at 4.3%. For more on what's behind the numbers, I'm joined now by WSJ economics reporter Chaodang Chao. A few months ago, economists were really worried about a hiring slowdown hurting the economy. Now, this is the second really good month in a row of jobs numbers. Can we safely say that the labor market has strengthened?

[E]

I think that the strong number from today is a glimmer of hope that it will become easier for those without a job to find a job. That said, I think economists will probably want to see job gains for a few more months before they feel like conditions have really turned a page. It's two months of strong data that we've seen. So it's a little bit early to say that companies are shrugging off the Iran war or even completely shrugging off tariffs. But businesses are seeing conditions stabilizing and they have weathered tariffs. So some are hiring.

[B]

Were there any surprises among the sectors where we saw this growth? I mean, a lot of the growth over the past few months has come from industries like healthcare. Did we see that again this month?

[E]

Yeah, very much so. Healthcare and social assistance jobs continue to power the overall job gains. We saw Healthcare add 54,000 jobs in April. One surprise was the retail sector. We saw jobs there in supercenters and warehouse clubs. Broadly speaking, jobs are coming through in more sectors than just healthcare.

[B]

Of course, we would be remiss to not talk about the Fed. It's been caught between inflation concerns and worries about a deteriorating job market, those two mandates always in tension. What does it mean for the Fed if the jobs market seems like it's getting stronger?

[E]

For a long time, the Federal Reserve has wondered whether it needs to keep cutting interest rates to support what appears to be a shaky labor market. Now that we've had this strong report, I think it puts more focus on the inflation data, which we'll see next week from the Labor Labor Department for the month of April. We know inflation is drifting up instead of down because of tariffs and also because of the effects of the Iran war. And so I think we're going to see the Fed focusing increasingly on that.

[B]

That was WSJ economics reporter Xiaodang. Thanks so much, Chao.

[E]

Thanks.

[B]

And let us know if you've got any questions on this labor market. You can send a voice memo to wnpodsj.com, or leave us a message at 212-4164-4328. Make sure to include your full name and location. We might just use your comments on the show. The Journal has learned that Apple and Intel have reached a preliminary agreement for intel to make some chips for Apple devices. The deal is the result of talks between the two companies that have been going on for more than a year. Intel stock soared 14%, closing at a record, while Apple gained 2%. The deal would be a big one for Apple, which has been under pressure to find enough advanced chips to meet consumer demand for its devices. And it's an even bigger one for intel, which has struggled for years after falling behind chip making rivals like TSMC and Samsung. Last summer, the Trump administration took a 10% stake in intel, and the government played a key role in bringing Apple to the table for this deal, the latest chapter in Intel's comeback story. Representatives for the two companies declined to comment. In other deals news, it's a first for a big Western automaker. Stellantis, the company behind Jeep, Chrysler, Fiat and Ram, says it has a deal in Europe with a Chinese car company. Two Stellantis factories in Spain will produce electric vehicles with the Chinese company Leap Motor. WSJ Autos reporter Steven Wilmot says this will be a closely watched test of collaboration between Western automakers and their growing Chinese rivals.

[F]

The Chinese side wants access to the European market, and local production assets are a key part. Stellantis, which has a big factory in Zaragoza in Spain. It's got a lot of spare space in this factory and it desperately needs to cut costs. So a good way of doing that is to essentially rent out the spare space to Leap Motor. So it's easy for them in the short term at least to turn this arrangement into a win. But longer term signal this sends is ambivalent at best. Stellantis says that Leap Motor sales aren't cannibalizing sales of Citroens and Renaults and Fiats and all the brands that it sells in Europe. And analysts are very worried for the long term health of the European market. The Chinese market is hyper competitive and it looks like the European market's going that way. But this is kind of the first closely watched test case of how this kind of arrangement might shake out.

[B]

The better than expected jobs report and strong gains in chip stocks powered stocks to their latest records. The Nasdaq finished up 1.7% for its 11th record close of 2026. The S& P also closed at a record high both indexes have gained for six straight weeks. The Dow, meanwhile, was nearly unchanged today. And heads up that we dropped a special bonus episode earlier today. In the latest what's News and Earnings, we look at how pharmaceutical companies are going for scale over price as demand for weight loss drugs soars. That's in your what's News feed now. Coming up, what we know about the latest Trump administration leader who's on the chopping block. More on that after the break. Hi, this is Alex Osola, host of

[D]

the WSJ's what's News podcast. We bring you the biggest news of the day, from business and finance to global and political developments that move markets. If you're looking for more insights and tools to understand the latest headlines, consider becoming a subscriber to the Wall street journal. Visit subscribe.WSJ.com whatsnews to subscribe now.

[B]

A decision from the Virginia Supreme Court today dealt a big win for Republicans looking to keep their narrow majority in the House of Representatives. State voters had recently approved a new map that was designed to make the split of districts 10 to 1 in favor of Democrats. Now, with the court's 4 to 3 decision, that map is out the window. The court found the legislative process that Democrats used to draw the map violated the state's constitution. That means the current Virginia map, which has a more even split between the Democratic and Republican districts, will remain in place. Journal national political reporter Ken Thomas says it's still a tight race for control of the House.

[C]

This is a setback for Democrats, but I don't think there's an expectation that this decision favors Republicans in the big picture in terms of who will control the House after the November midterm elections. There are 30 to 35 seats around the country that are considered competitive, and Republicans are in defense on a lot of those seats.

[B]

Democrats loss in Virginia follows a Supreme Court decision limiting the use of race in congressional maps that has touched off a new record round of redistricting in the South.

[C]

We saw Tennessee's governor sign a new plan this week that will eliminate a seat that's been held around the Memphis area by Democrats. There are other efforts afoot in South Carolina and Alabama. We could certainly see Republicans change the map to benefit their abilities of winning more seats in the fall elections.

[B]

In Washington, we're exclusively reporting that President Trump has signed off on a plan to fire FDA commissioner Marty McCary. That plan isn't yet final and could change. McCary's tenure has been tumultuous. Earlier this week we reported that he was under pressure from President Trump to more quickly approve flavored vapes, which the FDA then did. There's also been a lot of turnover in the FDA's leadership ranks. Makary didn't respond to a request for comment on Iran. US Forces struck two empty Iranian flagged oil tankers that were trying to go around the American naval blockade. Secretary of State Marco Rubio said that the US Will fire on any Iranian vessels that threaten American ships. He added that Washington was expecting a response from Tehran today about a proposed memo to end the war. And Russia and Ukraine have agreed to a three day ceasefire and prisoner exchange. President Trump announced in a social media post that the pause in fighting will begin tomorrow. It coincides with Russia's annual Victory Day, a celebration of the country beating Germany in World War II. Ukraine and Russia both confirmed the ceasefire and that's what's news for this week. Tomorrow you can look out for our weekly markets wrap up what's News in Markets? Then on Sunday we'll have the latest episode of our USA 250 series. It's all about how America fell in love then out of love with nuclear energy and how now attitudes may be changing again. That's in what's New Sunday and we'll be back with our regular show on Monday morning. Today's show is produced by Danny Lewis and Anthony Bansi with supervising producer Tali Arbel. Michael Lavelle wrote our theme music. Aisha El Musleam is our development producer. Chris Zinsley is our deputy editor, and I'm Alex Osola. Have a great weekend, and thanks for listening. Foreign.

[G]

Hey, this is Telus Demos, and I'm Miriam Gottfried. We're reporters at the Wall Street Journal and The hosts of WSJ's take on the Week. It's a weekly show that gives listeners a leg up in the world of markets and investing.

[H]

From the Fed's moves to market bubbles, we dive into the biggest deals, key players and business news ahead. If you're looking for more news and tools that you can use to help navigate the markets, consider becoming a subscriber to the Wall Street Journal.

[G]

Visit subscribe WSJ.com TakeOnTheWeek to subscribe now.