The Good News No One Is Talking About

Mary Kelly Leadership Economist | Keynote Speaker | Conference & Training Programs

If you only read the headlines, you might think the U.S. economy is teetering on the brink of disaster. Yet when you look at the actual data, there are several encouraging trends that leaders, business owners, and investors should recognize.

1. The Labor Market Remains Remarkably Strong

The latest employment report showed the U.S. economy added 172,000 jobs in May, more than double what many economists expected. Even more encouraging, prior months were revised upward by an additional 93,000 jobs. Unemployment remains at a relatively low 4.3%.

For perspective:

• A recessionary economy loses jobs.
• A stagnant economy creates few jobs.
• A healthy economy consistently creates jobs.

The United States is still creating jobs at a healthy pace.

As an economist, I pay close attention to labor markets because jobs drive consumer spending, housing demand, tax revenues, and business profitability. The labor market is not flashing recessional signals right now.

2. Wages Continue to Move Higher

Average hourly earnings continue to rise. U.S. hourly wages reached record levels in 2026, with earnings increasing month-over-month and year-over-year.

Are wages rising as fast as everyone would like? No.

Are many households feeling squeezed by inflation? Absolutely.

But the long-term trend remains positive:

• Workers are earning more than they did a year ago.
• Employers are still competing for talent.
• Labor shortages continue in many industries.
• Companies are paying more to attract and retain employees.

This is particularly true in the fastest growing industries of healthcare, skilled trades, construction, logistics, and hospitality.

3. The Stock Market Has Rewarded Investors

Despite volatility, investors who stayed in the market have generally been rewarded.

Overall U.S. stock funds are up approximately 11.5% year-to-date, fueled largely by technology, artificial intelligence, and semiconductor investments. At one point this spring, the S&P 500 experienced one of its strongest nine-week rallies in decades.

But remember, markets pull back as they did recently. Fluctuations are normal, and they are not evidence that the economy is collapsing.

The bigger story is:

• Corporate profits remain healthy.
• Innovation remains strong.
• AI investment is creating enormous opportunities.
• Investors continue to place capital into American companies.

4. Business Investment Is Still Happening

Many organizations spent the past two years preparing for a recession that never arrived. Instead, businesses are investing in AI, expanding automation, building supply chain resilience, and increasing productivity initiatives.

The companies that are winning right now are not waiting for certainty. They are making strategic investments despite all of the uncertainty. That is exactly what leaders need to do.

5. Consumer Spending is Resilient

One of the biggest surprises of the last several years has been the willingness of consumers to keep spending. Americans continue to travel, eat out, attend sporting and musical events, buy homes, purchase vehicles, and invest in experiences

Consumer spending represents roughly 70% of U.S. GDP. As long as people remain employed and wages continue rising, the economy retains a strong foundation.

What Leaders Should Take Away from This

Things are not perfect. We still face:

• High government debt
• Inflation concerns
• Housing affordability challenges
• Geopolitical uncertainty
• Labor shortages in critical industries

But leaders who focus only on the negative headlines are missing important opportunities. The data tells a more balanced story; companies are hiring, people are working, wages are rising, businesses are investing, the stock market has created substantial wealth for investors, and innovation remains high.

The lesson for leaders is simple: do not delay decisions due to uncertainty.

The economy is always facing challenges. The organizations that thrive are the ones that recognize both the risks and the opportunities. Right now, there are plenty of opportunities available for leaders willing to focus on what is working rather than becoming paralyzed by what might go wrong.

As I often tell my executive coaching clients, “The economy rewards action, not anxiety.” The leaders who keep moving forward will outperform those who spend their time worrying about the next headline.

Need to talk this over with a leadership economist? Contact Mika@ProductiveLeaders.com for a complimentary appointment with me.

Dr. Mary C. Kelly is a Hall of Fame leadership speaker, PhD economist, retired Navy Commander, and author of 22 books, including Leadership is Tough: What Great Leaders Do Differently.