The unemployment rate dropped to its lowest level in a year, but only because half a million people gave up looking for work — a bad sign for the economy.

• The job market added far fewer jobs than expected, and the share of people working or job-hunting fell to its lowest level since 2021.
• People who stop looking stop being counted, so the headline number looks better than reality.
• Younger workers are patching together gig work and second jobs, and credit card late payments are climbing fast.
• Trust in the numbers is shaky after last year's firing of the head of the Bureau of Labor Statistics over claims the data was manipulated.
• Companies are posting record profits while replacing workers with outsourcing and AI instead of hiring.

Outlook: Every recession since 1970 started with hiring slowing like this, so weaker spending and a downturn look likely next.