Overview
- On CNBC, National Economic Council Director Kevin Hassett said firms adopting AI are seeing such efficiency gains that they are delaying entry-level hiring.
- He argued the softness will be temporary, saying rising output and incomes should allow the labor market to rebalance.
- Recent indicators include Bureau of Labor Statistics data showing just 22,000 nonfarm jobs added in August and unemployment ticking up to 4.3%.
- Stanford researchers reported nearly a 20% decline in employment for 22- to 25-year-old developers by July 2025 compared with late-2022 peaks.
- The administration continues to promote AI infrastructure through executive actions as aides dismiss the idea of federal bailouts after OpenAI’s CFO briefly floated a backstop.