Federal Reserve Chair Jerome Powell drew a stark picture of a labor market that looks fine on the surface—4.3% unemployment, solid consumer spending—but is quietly losing momentum underneath. Once you adjust for statistical overcounting in the payroll data, he said during a press conference Wednesday following the FOMC meeting, “job creation is pretty close to zero.”
He connected that slowdown, at least in part, to what CEOs are now openly telling investors: AI allows them to do more with fewer people.
He noted “a significant number of companies” have recently announced layoffs or hiring pauses, with many of them explicitly citing AI as the reason.
