Mixed Signals in the Job Market: Potential Slowdown Ahead

White House economic adviser Kevin Hassett has noted mixed signals in the job market, indicating a possible slowdown. Although output markets are performing well, firms are using AI to increase productivity, potentially reducing the need for new hires. This may lead to the Federal Reserve lowering interest rates.

White House economic adviser Kevin Hassett has recently highlighted the presence of mixed signals in the job market, suggesting the possibility of an impending slowdown.

While he pointed out the robust performance of output markets, Hassett emphasized that firms are increasingly relying on artificial intelligence to boost worker productivity. This development, he noted, may reduce the need for new hires, especially fresh graduates.

Economists speculate that a weakening labor market could prompt the U.S. Federal Reserve to consider a further reduction in its key interest rate by 25 basis points in the coming month.

(With inputs from agencies.)