The US labor market showed resilience in March, adding 178,000 jobs, significantly exceeding economists' expectations of 70,000. This growth comes despite a revised loss of 133,000 jobs in February, indicating a challenging economic environment. The unemployment rate fell to 4.3%, reflecting a slight recovery. However, the overall job market remains cautious, with the 'quits rate' dropping to 1.9%, the lowest since 2020, as workers opt for job security amid uncertainty. The first quarter of 2026 saw 217,362 job cuts, the lowest for that period since 2022. The inflation rate, which dipped to 2.3% in April 2025, has been volatile due to external factors, including the US-Israel war with Iran, which could further impact prices. Rising gas prices, now over $4 per gallon, are expected to contribute to inflation, reminiscent of the spikes seen during the 2022 Russia-Ukraine conflict. Experts warn that a $10 increase in oil prices could lead to a 0.2% rise in inflation, adding to the economic challenges ahead.