As U.S. jobs disappear, the Federal Reserve returns to rate cuts
It is difficult to find a job in the United States. According to the Office of the Statistics, US businesses added only 22,000 jobs between July and August, and great revisions in federal business data show that the recruitment rate is quite low in the summer of 2025.
“Every month is left behind 200,000 working days,” Gregory Daco, the economist of Ey-Parthenon. He said. He continued: “We will be in an environment where business growth is essentially around zero.”
Experts, recruitment of recruitment is the most powerful for young workers, he said. These Kohort, companies enter the labor market according to artificial intelligence trials. The combination of this technology and a rapidly developing policy environment in Washington limit options for many people at the beginning of their careers.
“Considering how AI models are trained, they only learn from textbook information or well -written information. The entry -level workers are good.” He said.
Software developer roles for workers in their 20s have fallen sharply since 2022. A Stanford work On the employment effects of artificial intelligence. Young marketing and sales managers also have difficulty hiring. However, according to the latest BLS Employment Status Report, young workers find jobs relatively quickly in health services and retail jobs.
“However, there is increasing evidence that there may be more weakness than these two sectors for the next six months,” Daco said. He said.
Experts, enterprises, taxes, tariffs and immigration developing federal policies to recruit the recruitment of recruitment, he said.
Wells Fargo CEO Charles Scharf on September 10 “Squawk Box” “they want to cope with uncertainty, but they need to react to it. So some of it is very cautious about who they hired.” He said.
At the September meeting, the Federal Reserve reduced the target of federal fund interest rate by 25 basis points. The Central Bank warned the Potential negative risks for the US works during the summer, as federal data caused a sharp slowdown in recruitment.
Low interest rates can motivate businesses to employ more workers. With the deduction of the September ratio, the federal reserve is moving towards a more neutral monetary policy stance that can help the labor market,. At the same time, personal consumption expenditures or PCE inflation remained at 2.59%, which is above the Fed’s 2%target ratio.
“We should look at this in the context of a shock -guided economy,” Charles Schwab’s senior investment strategist Kevin said, “More supply shock -guided economy.” He said. “And when you have more supply shock -guided environment, federal reserve or any central bank has less authority to combat inflation and at the same time to help the labor market.”
Watch video To find out why things have disappeared in the United States.
