The US labor market has been steadily deteriorating, with the headline unemployment rate at 4.4%, a low by historical standards. However, the six-month average monthly payroll growth is close to zero. This is not sustainable for the world's largest economy, with a labor force of around 170 million. The fall in "break-even" job growth, which increases employment but stabilizes the unemployment rate, has led to a steady unemployment rate. This has also exacerbated public finances. The Federal Reserve paused its interest-rate-cutting cycle in January and indicated that it is confident in reducing potential risks to the labor market.