Overview
- Kevin Hassett said AI tools are boosting incumbent output enough that firms are delaying entry-level hiring.
- He argued the drag should be temporary as rising income and output create new demand.
- Recent BLS data showed just 22,000 jobs added in August and unemployment at 4.3%, reflecting softer hiring.
- A Stanford analysis reported roughly a 20% drop in employment for 22- to 25-year-old developers since the 2022 peak.
- The administration is promoting AI infrastructure even as policy voices split over bailouts and H-1B limits, with David Sacks rejecting a bailout and OpenAI’s Sarah Friar walking back a call for a federal backstop.