Jerome Powell Warns of ‘Zero Net Job Growth,’ Says Hiring Has Been Flat for Six Months in US
Jerome Powell signaled concern over weakening job creation, noting that recent data points to an unusually low level of hiring. He said that when job growth over the past six months is adjusted for what Federal Reserve staff see as overcounting, “there’s effectively zero net job creation in the private sector.” Powell explained that this reflects a broader shift, with the economy experiencing “non-existent” growth in the labor force. He described the situation as a “zero employment growth equilibrium,” suggesting that while the current level of hiring may match the economy’s needs, it is not a comfortable balance. Powell added that the trend carries “downside risk” and is being closely monitored by policymakers. He also indicated that these conditions may partly stem from deliberate policy changes, including shifts affecting immigration and labor supply dynamics.
