WSJ What’s News: What’s Actually Happening in the U.S. Jobs Market?

Host: Luke Farkas, The Wall Street Journal
Guests: Justin Lehart (Economics Reporter, NY) and Lindsay Ellis (Workplace & Careers Reporter, DC)
Date: February 15, 2026

Episode Overview

This Sunday edition of What’s News takes a deep dive into the current state of the U.S. labor market. With headlines about historic January layoffs, big business cutbacks, automation, and AI reshaping the workforce, public sentiment feels uneasy despite surprising job gains in some sectors. The episode explores whether the official data tells the whole story, why workers across generations are concerned, and how both job seekers and employers are adapting to rapid technological change.

Key Discussion Points & Insights

1. Confusion and Contradiction in the Jobs Data

(00:18 – 03:00)

• January’s Surprising Numbers: U.S. added 130,000 jobs—more than double analyst expectations. Most new roles are in health care and social assistance, while government, warehousing, information, and financial services saw declines.
• Revision Shock: New data revisions reveal fewer jobs were created in the past two years than previously reported, contributing to public skepticism.
• Trust in Employment Numbers:
  • Justin Lehart (02:05):

    “The Bureau of Labor Statistics has not been as well funded as a lot of people would like… we are sort of more prone to measurement error… it can really throw you for a loop.”

• Survey Challenges: Both businesses and individuals are responding less to government surveys, making error and revision more likely.

2. Disconnection Between the Numbers and Lived Experience

(03:00 – 04:37)

• Lindsay Ellis: Many job seekers—especially in corporate roles—feel “totally stuck,” with actual opportunities not matching upbeat headlines.
  • Quote (03:00):

    “There is this massive disconnect between what they see publicly and their own day to day experience.”

• Growth in Healthcare/Social Services: Sectors seeing job growth don’t match the skill sets of many job seekers, particularly those in tech, finance, and professional services.

3. Older Workers Staying or Re-entering the Workforce

(04:08 – 05:59)

• Listener Observation: Older Americans increasingly hold service roles, from office assistants to retail and Uber drivers. Retirement is becoming less attainable.
  • Listener Bailey Dolof (04:08):

    “We are young and we are afraid that when we get older, the world isn’t going to change and it’s still going to be in a position where we can’t retire.”

• Age Bias & “Overqualified” Label: Older applicants often feel “squeezed out” for jobs matching their skill set.
• Value of Networking: Those with robust professional networks have more success landing positions.
  • Lindsay Ellis (05:30):

    “Older workers who said they had success… really leaned in on their connections sometimes over decades in the workplace.”

4. Young Job Seekers & Competitive Tension

(05:59 – 07:03)

• Listener Story:
  • Alex Kittridge (06:14):

    “I’ve gone on about 150 interviews in the last 12 months… it just shows how highly qualified and highly competitive the market is these days.”

• Application Flood: Employers are seeing a “massive surge” in applications, possibly due to AI-generated resumés, making screening overwhelming.

5. The “Robot vs. Robot” Job Hunt

(07:03 – 08:09)

• AI in Recruitment and Job Seeking:
  • Lindsay Ellis (07:03):

    “Applicants and hiring managers… describe the job market right now as just robot versus robot. Job seekers are pushing out AI applications and companies are using AI tools to screen them. And it’s just like, when can I actually talk to a human?”

• Entry-Level Squeeze:
  • Companies hesitate to hire for entry-level roles with uncertainty over what AI will handle in the near future. This hesitancy makes school-to-work transitions harder, especially for young professionals.

6. Real Impact of AI on the Labor Market

(09:00 – 10:04)

• Justin Lehart: Initial academic studies (e.g., Stanford using ADP payroll data) show AI is affecting some occupations and younger workers, but the aggregate impact remains small so far.
  • Quote (09:20):

    “It is affecting some occupations, in particular affecting young people. It’s really, really slight though…”

  • But: Business uncertainty about AI’s future capabilities contributes more to the current “very low hire environment.”

7. On-the-Ground Stories: AI as Threat and Opportunity

(10:17 – 11:23)

• From Silicon Valley:
  • Rachel Bedor (10:17):

    “Recently my boss asked me to code an AI agent to replace a big chunk of my job… it does make me nervous.”

• In Commercial Insurance:
  • Miles Hilliard (10:58):

    “It actually allows younger folks in the workforce that may have less experience be able to work at a higher clip because they're supported by a more robust data infrastructure…”

8. Executive vs. Employee Perspectives on AI

(11:30 – 12:55)

• Surveyed Divide: Executives report AI is saving significant time, while most employees see little benefit and feel overwhelmed by new demands.
  • Lindsay Ellis (11:30):

    “Employees were saying AI wasn’t saving them much time at all in their daily work and many reported feeling super overwhelmed by the ask to start incorporating it into their jobs.”

  • Follow-up (11:50):

    “A significant chunk of time savings from AI is reinvested in correcting errors or poor output from the technology… it is the lower level employees who might be absorbing that kind of work.”

9. “Deep Freeze” in the Labor Market: Low Hire, Low Fire

(12:55 – 14:17)

• Justin Lehart: Describes current conditions as a “deep freeze”—few people quitting, few being hired, little churn.
  • Justin Lehart (13:17):

    “…this deep freeze… a low hire, low fire environment… people are really, really worried about the labor market… you don’t have people leaving their jobs... You get this sort of stasis and it’s really, really tough, especially for young workers.”

• Unemployment Rate vs. Perception: The official unemployment rate is 4.3%, but public anxiety and stagnation are high.
• Particular Struggles for Young Workers: Breaking into the market or starting careers is especially challenging.

10. Looking Ahead: What to Watch

(14:22 – 14:55)

• Lindsay Ellis: Interested in how this “freeze” shapes career plans and mobility.
  • Quote (14:22):

    “How do they see the potential for advancement, for change, for pivoting? How do you even break in in this environment... when there is such a disconnect between the unemployment rate and the stagnancy many are experiencing?”

Notable Quotes & Memorable Moments

• “Job seekers are basically pushing out AI applications and companies are using AI tools to screen them. And it’s just like, when can I actually talk to a human?”
  — Lindsay Ellis (07:03)

• “Older workers who said they had success… really leaned in on their connections sometimes over decades in the workplace.”
  — Lindsay Ellis (05:30)

• “It actually allows younger folks in the workforce that may have less experience be able to work at a higher clip because they're supported by a more robust data infrastructure…”
  — Miles Hilliard, listener (10:58)

• “This deep freeze… a low hire, low fire environment… people are really, really worried about the labor market… it’s really, really tough, especially for young workers.”
  — Justin Lehart (13:17)

Important Timestamps

• 00:18 — Episode introduction: Setting the scene for the job market discussion
• 02:05 — Discussion of trust and measurement error in official jobs numbers
• 03:00 — The disconnect between job market statistics and lived experience
• 04:08 — Older Americans' struggle in the labor market and the importance of networking
• 06:14 — Listener recounts intense competition and disappointment in job search
• 07:03 — “Robot vs. robot” dynamics in hiring and applying
• 09:20 — Academic insights on AI’s current, limited impact on employment
• 10:17 — Listener stories: Coding yourself out of a job; AI as a career booster
• 11:30 — Survey: Executives vs. employees on AI’s time-saving value
• 13:17 — The “deep freeze”: low hiring/firing, high anxiety, and its effect on young workers
• 14:22 — What reporters are watching in the months ahead for the labor market

Episode Tone

Conversational and accessible, blending journalistic data with everyday experiences and candid listener stories. The tone is empathetic to job seekers’ frustrations and skeptical of overly rosy official narratives, while probing for nuanced explanations amid uncertainty.

Summary prepared for those seeking a clear, structured roadmap through the complexities of today’s U.S. job market—without the need for technical jargon or direct listening.