Jobless Growth: US Economy's Puzzling Divergence

The U.S. economy is experiencing a paradox: robust growth yet stagnant job creation. Companies are reluctant to hire, leading to job losses in June and August. This situation, coupled with high productivity and strong GDP, poses a dilemma for policymakers. The Federal Reserve is grappling with whether to cool down or stimulate the economy. Experts suggest that businesses are investing heavily in AI, potentially reducing hiring. The labor market has also been impacted by policy changes in trade and immigration. The economys reliance on strong productivity for growth without job creation makes it vulnerable. The Federal Reserve is expected to make more rate cuts, but the current situation complicates these decisions.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.