February 2026 Macro Brief on Labor Markets

This document is a macro brief detailing the state of the economy as of February 20, 2026. It aims to inform executive teams, boards, and investors about global macroeconomic developments and indicators that reflect the overall health of the economy, business activities, and consumer trends. Notable insights include a continuing softening of job growth in the US, particularly affecting lower-income consumers, and labor market dynamics in Canada reflecting US tariff impacts. The brief outlines key considerations for clients, such as the need for adaptive workforce strategies and the importance of balancing AI adoption with job creation. It details a global trend of cooling labor markets marked by a decline in employment growth and an increase in unemployment, particularly in certain sectors due to ongoing geopolitical and economic pressures. The document also discusses the potential for 'jobless' expansions driven by AI, impacting consumer affordability and market dynamics. Overall, the brief captures the complexities of labor markets amid changing economic conditions.