Summary
The U.S. economy is growing quickly, but job creation is slow. This trend, where the economy expands without significant hiring, is expected to continue. Factors such as increased automation and spending from wealthier households contribute to this situation.
Key Facts
- The U.S. economy grew at a 4.3% annual rate in the third quarter of 2025.
- Job creation averaged just 51,000 per month, despite the economic growth.
- Household consumption rose 3.5%, largely driven by higher-income households.
- Investment in automation and artificial intelligence is increasing.
- Nominal GDP grew by 8.2%, while the unemployment rate increased to 4.6% in November 2025.
- President Trump's fiscal policies, including corporate tax cuts, encourage investment in technology over labor.
- Large companies benefit from these tax incentives, while smaller businesses struggle to hire due to higher interest rates.
- The Middle Market Business Index indicates that midsize company hiring intentions are flat despite improved business confidence.
