Weekly Global Economic Update: Key Highlights from Deloitte Insights – Week of April 6, 2026
Deloitte’s team of economists, led by Chief Global Economist Ira Kalish, provides a detailed analysis of the latest economic developments around the world. The recent report underscores important trends spanning labor markets, inflation, international conflicts, and sector-specific growth, offering valuable insights for policymakers, business leaders, and investors.
US Job Market: Mixed Signals Amid Volatility
The US labor market showed surprising resilience in March 2026 but remains characterized by uncertainty and uneven performance across sectors. The government’s March jobs report revealed a payroll increase of 178,000, surpassing expectations for the month. Despite this strong monthly gain, the net job growth over the past 12 months remains modest at just 260,000 additional positions.
Employment growth was highly variable month-to-month, with February seeing a sharp decline of 133,000 jobs. This volatility suggests that it is premature to declare a sustained positive trend in the job market.
Key industry highlights include:
- Construction grew by 26,000 jobs.
- Manufacturing added 15,000 jobs.
- Transportation and warehousing expanded by 21,000 jobs.
- Health care and social assistance led growth with 89,900 new jobs in March alone and a robust 680,500 jobs added over the last year.
- Leisure and hospitality also saw significant growth of 44,000 jobs.
In contrast, some sectors faced job losses or stagnation:
- Financial services lost 15,000 jobs.
- Professional and business services added just 2,000 jobs.
- The information sector contracted by 3,000 jobs.
Notably, excluding the strong gains in health care and social assistance, total employment actually decreased by 420,500 over the last year, indicating weakness in much of the labor market.
Factors potentially contributing to the sluggish job growth in 2025 include restrictive immigration policies limiting labor force expansion and corporate cost-cutting measures in response to tariff pressures. The reasons behind the March rebound remain unclear, especially given the alternating positive and negative monthly job figures over recent months.
Wages and Labor Participation: Wages Rise Amid Weakening Demand
Average hourly earnings for private-sector workers increased by 3.5% compared to a year ago — the slowest pace of wage growth since May 2021. This deceleration indicates softer demand for labor but is still above inflation, effectively increasing workers’ purchasing power.
However, labor force participation declined sharply in March, partly contributing to a fall in the unemployment rate from 4.4% to 4.3%. The household survey also recorded a fall in employment, underscoring ongoing fragility in the labor market.
Impact of Middle East Conflict: Market and Service Sector Response
Global financial markets reacted noticeably to escalating tensions in the Middle East. Crude oil prices surged due to concerns about prolonged conflict and potential supply disruptions. Simultaneously, equity markets experienced modest declines while bond yields ticked higher.
In the US, the conflict has put pressure on the service sector. The S&P Global Purchasing Managers’ Index (PMI) for US services dropped from 51.7 in February to 49.8 in March—the first reading signaling contraction since January 2023. This decline is particularly severe among consumer-facing services, with some of the steepest downturns observed outside pandemic lockdown periods.
S&P Global analysts noted the strain on the US economy is exacerbated by rising prices and heightened uncertainty, fueled by geopolitical risks and recent policy decisions such as tariffs.
International Developments and Other Regional Trends
Beyond the US, Deloitte’s update touched on notable global economic movements:
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China’s Economy: Despite global challenges, China’s economy demonstrated resilience amid ongoing headwinds and potential crises, which will be closely monitored for its impact on global trade and markets.
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Eurozone Inflation: Inflationary pressures accelerated in the Eurozone, raising concerns over consumer costs, monetary policy adjustments, and economic growth prospects in the region.
Looking Ahead
As global economic uncertainty persists—with geopolitical risks, inflationary pressures, and labor market volatility—stakeholders will be watching closely for emerging trends that could shape the remainder of 2026. Deloitte Insights continues to monitor these developments, offering expert analysis and actionable intelligence to support strategic decision-making worldwide.
For ongoing updates and comprehensive economic research, visit Deloitte Insights website or access personalized content through the MyDeloitte Dashboard.
Contact:
Ira Kalish, Chief Global Economist
Deloitte Services LP
[email protected]
+1 310 420 0392
This economic update draws upon the latest Deloitte Research Centers’ data and global analysis as of April 2026.