The challenging U.S. labor market is entering a new normal, according to Goldman Sachs economists David Mericle and Pierfrancesco Mei, who tackled the phenomenon of “jobless growth” in an Oct. 13 note. It resonates with what Federal Reserve Chair Jerome Powell memorably described in September as a “low-hire, low-fire” labor market, in which, for some reason, “kids coming out of college and younger people, minorities, are having a hard time finding jobs.”
Some analysts blame the downturn in entry-level hiring on the impact of AI on the economy, others on macroeconomic uncertainty, especially the seesawing tariffs regime from the Trump administration. The takeaway is clear, though, that getting hired is really hard in the mid-2020s.
