After noting U.S. gross domestic product rose at a strong pace in the second quarter of 2025, Hassett said, “there could be a little bit of, almost, quiet time in the labor market, because firms are finding that AI is making their workers so productive that they don’t necessarily have to hire the new kids out of college and so on.”
He maintained, however, that any AI-induced softness in the market would be temporary.
“Because there’s so much output growth and income growth, that’s the kind of thing that a free market will work out relatively quickly as, you know, new ways to spend money emerge,” Hassett said.
Fears about AI replacing entry-level jobs are hardly new, but they have seldom been expressed by the Trump administration, which has championed the nascent industry and taken steps to expand its development in the U.S.
Sweet_Concept2211 on
Nope. AI is the bubble making financial markets look less bleak.
By indicators that count, the US is in a recession following Republicans taking a wrecking ball to multiple key economic hubs, as well as slapping global sanctions on Americans via chaotic tariffs.
Labor markets are fucked because of too much economic uncertainty, not “AI”.
Tungstenfenix on
“Quiet Time in labor market” is a hell of a way to say unemployment is about to rise again and its gonna be recent graduates who suffer.
panic_talking on
These people are disgusting liars who are enriching themselves off of the struggles of the American people. Depress the labor market in a bubble they know they will be bailed out of and get a ton of investing in their technology even though I wont deliver what they say.
H_Mc on
I hate this sentence… ““Because there’s so much output growth and income growth, that’s the kind of thing that a free market will work out relatively quickly as, you know, new ways to spend money emerge,” Hassett said.”
Unless I’m missing something, he’s basically saying, it’ll all be fine, people still have money to spend so we’ll just invent new industries. It’s pure magical thinking. What happens when people don’t have money to spend?
lost_man_wants_soda on
Ai is pretty OP. My productivity with AI tools is insane. Things that would’ve taken me months are compressed into hours.
It’s surreal but also disappointing that some of the things that took me the longest actually had no impact on the business performance at least at a measurable level
PapaBorq on
I work in a data entry field, with connections in other companies in the same field. I don’t know a damn person using anything AI.
deliciousadness on
Seems like some billionaires could use a bit of quiet time…
matthra on
No phrase is to silly to avoid saying the R word, recession.
Mochinpra on
You can call it whatever you want. Recession is the normal word for it. One triggered by Republican party. And if it keeps up itll be called The Great Depression.
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From the article
After noting U.S. gross domestic product rose at a strong pace in the second quarter of 2025, Hassett said, “there could be a little bit of, almost, quiet time in the labor market, because firms are finding that AI is making their workers so productive that they don’t necessarily have to hire the new kids out of college and so on.”
He maintained, however, that any AI-induced softness in the market would be temporary.
“Because there’s so much output growth and income growth, that’s the kind of thing that a free market will work out relatively quickly as, you know, new ways to spend money emerge,” Hassett said.
Fears about AI replacing entry-level jobs are hardly new, but they have seldom been expressed by the Trump administration, which has championed the nascent industry and taken steps to expand its development in the U.S.
Nope. AI is the bubble making financial markets look less bleak.
By indicators that count, the US is in a recession following Republicans taking a wrecking ball to multiple key economic hubs, as well as slapping global sanctions on Americans via chaotic tariffs.
Labor markets are fucked because of too much economic uncertainty, not “AI”.
“Quiet Time in labor market” is a hell of a way to say unemployment is about to rise again and its gonna be recent graduates who suffer.
These people are disgusting liars who are enriching themselves off of the struggles of the American people. Depress the labor market in a bubble they know they will be bailed out of and get a ton of investing in their technology even though I wont deliver what they say.
I hate this sentence… ““Because there’s so much output growth and income growth, that’s the kind of thing that a free market will work out relatively quickly as, you know, new ways to spend money emerge,” Hassett said.”
Unless I’m missing something, he’s basically saying, it’ll all be fine, people still have money to spend so we’ll just invent new industries. It’s pure magical thinking. What happens when people don’t have money to spend?
Ai is pretty OP. My productivity with AI tools is insane. Things that would’ve taken me months are compressed into hours.
It’s surreal but also disappointing that some of the things that took me the longest actually had no impact on the business performance at least at a measurable level
I work in a data entry field, with connections in other companies in the same field. I don’t know a damn person using anything AI.
Seems like some billionaires could use a bit of quiet time…
No phrase is to silly to avoid saying the R word, recession.
You can call it whatever you want. Recession is the normal word for it. One triggered by Republican party. And if it keeps up itll be called The Great Depression.