Key Takeaways The U.S. economy is growing at a healthy pace, but job growth is lagging behind. AI technology may be contributing to the job slump by automating tasks that would otherwise be given to entry-level hires. A wave of AI job losses is one of the risks that could trigger the next recession, according to economists at Moody's Analytics. By many measures, the U.S. economy is doing well, with the gross domestic product growing steadily and stock indexes routinely hitting record highs. But on ...

The jobs data proved one thing… we are done hiring useless bureaucrats into the government who contribute nothing.Job growth is now coming from the private sector, which is exactly what should be happening. https://t.co/B4DbD3zW1l ...

Labor Market Overview - January job gains totaled 130,000 nonfarm payrolls, with the unemployment rate decreasing to 4.3%, the lowest since August [2] - Despite these gains, the labor market remains stagnant, with significant revisions indicating virtually no job growth in the second half of 2025 [2][3] - The concentration of job growth in a few sectors raises concerns about the overall health of the labor market [3] Economic Projections - The chief economist at EY-Parthenon anticipates subdued job growth for the remainder of 2026, potentially not exceeding 50,000 jobs per month [3] - Revisions from the Bureau of Labor Statistics revealed an average job gain of only 15,000 per month last year, with a net loss of 1,000 jobs in the last six months [3] Consumer Income and Spending - Average hourly earnings increased by 0.4% in January, but the annual gain of 3.71% is the lowest since July 2024, indicating pressure on consumer income [5] - Retail sales were unexpectedly flat in December, which could pose risks given that consumer spending accounts for over two-thirds of U.S. economic activity [5] - The combination of stagnant job growth and income pressures suggests a shift towards an "income-less expansion," affecting many families' financial stability [6]

JUST IN: 🇺🇸 US records lowest job growth in 2025 for a non-recession year since 2003. https://t.co/ZeCAcILjs5 ...

Healthcare Still Leads as Job EngineCONCLUDED[The U.S. Added 130,000 Jobs in January. Unemployment Rate Ticks Down to 4.3%.]Last Updated:---5 hours ago# Healthcare Still Leads as Job EngineBy[Megan Leonhardt]Job growth varied dramatically by sector last month, though healthcare and social assistance remained stalwart employment engines.The healthcare sector started off the year strong with the addition of 82,000 jobs in January, after a softer month in December. That's much higher than the average monthly g ...

Breaking: Job growth was unexpectedly strong in January, with 130,000 jobs added. The unemployment rate declined to 4.3%. https://t.co/rOgdoWivtA ...

Job growth in Texas was almost flat last year as migration to the state plunged and oil prices lagged https://t.co/6h9XnCXT6N ...

The report, scheduled for Friday, would have provided data on job growth, unemployment and wages in January. ...

Economic Overview - Donald Trump was re-elected as president in 2025, introducing new economic plans affecting trade, immigration, and the federal workforce [1] - Economic uncertainty has impacted consumers, job seekers, and small to midsize businesses due to potential policy changes [1][2] - The effective tariff rate has reached its highest level in decades, significantly affecting trade dynamics [15] Job Market - The US added only 584,000 jobs in the past year, marking the lowest job growth outside a recession since 2003 [5] - Federal employment decreased by 9% year-over-year, driven by efforts to increase government efficiency [11] - Manufacturing employment declined by 0.5% from the previous year, continuing a trend of job losses in the sector [13] Consumer Spending - Despite economic uncertainty, consumer spending remains strong, characterized by a "K-shape" recovery where wealthier individuals are spending more while lower-income households are cutting back [20] - Spending has been primarily driven by high-income individuals and those with assets, such as homeowners and stock market investors [21] Inflation and Economic Growth - Inflation has decreased from a peak of about 9% in 2022 but remains above the Federal Reserve's target of 2% [18] - Real GDP showed growth in the second and third quarters of 2025 after a decline in the first quarter, indicating resilience in the economy despite job market challenges [9][8] - The jobless expansion is expected to continue due to demographic shifts and reduced net migration affecting the labor supply [9][10]

Labor Market Assessment - The labor market is currently soft, with recent job growth averaging around 50,000 to 60,000 jobs per month [3] - This level of job growth is considered too high and likely to be revised downwards based on unemployment insurance administrative data, potentially nearing zero job growth [3][4] - Uncertainty surrounding AI is causing companies to delay hiring decisions, impacting the labor market [7] Monetary Policy and Inflation - Preemptive rate cuts initiated in September were intended to soften the economic impact of tariff uncertainty [4] - The speaker is not particularly worried about inflation, believing it will come down in the next three to four months [5][6] - Inflation expectations are well-anchored around 2% based on market pricing and TIPS [6] - The speaker advocates for continued rate cuts, viewing inflation as under control and the labor market as needing support [11] - A moderate pace of rate cuts is preferred, as dramatic action suggests waiting too long [12] Future Outlook - 2026 could be a better year due to the resolution of tariff uncertainty and potential productivity gains from AI [4][5] - The effects of tariffs are considered a one-time price effect, not expected to cause persistent inflation [10]