America's Steady Growth Amidst Unseen Job Surge

The U.S. economy's GDP increased by 1.4% in Q4 2025, but without significant job creation. Reasons include immigration policies, AI uncertainties, and tariff costs. Despite economic growth and low unemployment, consumer confidence is declining. However, spending continues, influenced by the 'K-shaped' economy impact among different income groups.

The U.S. economy is experiencing peculiar growth dynamics as the Commerce Department reported a 1.4% GDP increase in the fourth quarter. Despite this, job creation has remained sluggish, with under 200,000 jobs added in 2025, marking the lowest since the pandemic onset in 2020.

Contributing factors include immigration policy changes that have reduced workforce growth and technological advancements like artificial intelligence, which might make businesses hesitant to expand their workforce. Additionally, tariffs have squeezed company profits, influencing hiring reticence.

This economic environment shows low inflation and unemployment, yet consumer sentiment is at its lowest since 2014. Surprisingly, spending is buoyant, driven mainly by 'K-shaped' economic patterns that see different financial behaviors across income levels.

(With inputs from agencies.)