Summary
The rise of investment in artificial intelligence is boosting the stock market and economic growth, but it's not creating many new jobs. The job market is slowing down, and there's debate on what, if anything, the government should do. While AI is fueling financial markets, the need for human workers is not keeping pace.
Key Facts
- Rising investment in AI is driving the stock market and economic growth.
- The job market is slowing, despite a low unemployment rate of 4.3%.
- Job creation has dropped, with only 27,000 new jobs per month between May and August, down from 168,000 per month the previous year.
- Average hourly earnings growth slowed to 3.7% from 4.2% the previous year.
- A survey shows a low chance (45%) for workers to find a new job within a year if they lose their current one.
- 38% of major company CEOs plan to reduce employment, although 89% expect stable or increased investment spending.
- AI investments are adding more to economic growth than consumer spending.
- The S&P 500 hit a new high and is up 13.6% in 2025.
