FX.co ★ U.S. Services Employment Gauge Rises but Remains in Contraction in April

The U.S. ISM Non-Manufacturing Employment Index improved in April 2026, signaling a slower pace of job losses in the services sector, but remained below the threshold that separates expansion from contraction. The index rose to 48.0 in April from 45.2 in March 2026, according to data updated on 5 May 2026.

While any reading below 50 indicates contraction, the climb from March’s level suggests some easing in the pressure on service-sector employment. The latest figure points to a still-soft labor backdrop in non-manufacturing industries, but hints that the worst of the recent pullback in hiring may be moderating.

Market participants tracking the services economy are likely to view the April uptick as a tentative sign of stabilization rather than a clear turn toward growth, with upcoming months’ data needed to confirm whether employment in the U.S. non-manufacturing sector can move back into expansionary territory.