Summary
In 2026, the U.S. is expected to face weaker job growth and higher inflation despite stronger economic growth, according to economist Mark Zandi from Moody's Analytics. This comes after a slowdown in the labor market in 2025 and is influenced by policies such as increased tariffs and restrictive immigration measures. While there is optimism for GDP growth, employment challenges remain.
Key Facts
- Economist Mark Zandi predicts weaker job growth and higher inflation in 2026.
- The U.S. economy is expected to grow faster in 2026 than in 2025.
- Factors contributing to the weaker job market include restrictive immigration policies and increased tariffs.
- Inflation is expected to rise due to delayed effects of higher tariffs.
- Artificial intelligence has contributed positively to economic growth.
- The U.S. experienced a labor market slowdown in the second half of 2025.
- The Bureau of Economic Analysis reported a 4.3% GDP growth rate in Q3 of 2025.
- President Donald Trump faces scrutiny over economic handling amid these conditions.
