AI is starting to 'create some unemployment': Economist
The US added 227,000 nonfarm payroll jobs to the labor market in November, while the unemployment rate ticked back up to 4.2% and average hourly earnings rose 0.4% month-over-month.
"We have a really remarkably calm labor market right now... If you take a look at the pace of firings yesterday, you take a look at this hiring remarkable stability here — that's what I really see in this report," RSM chief economist Joe Brusuelas tells the Morning Brief's Seana Smith and Madison Mills. "It's an American labor market that's just moving along at full employment."
Brusuelas looks at President-elect Donald Trump's proposed tariffs and other economic policies as a risk to the US labor market's consistency in 2025.
As more workers are staying unemployed for longer between jobs, Brusuelas identifies Big Tech as a major instigator of this dilemma:
"The 800-pound gorilla in the room is technology beginning to create some unemployment? What economists would kindly call 'technological unemployment.' It's [why] everybody worries about artificial intelligence."
For more commentary on the November jobs report, catch Yahoo Finance's interview with Interactive Brokers chief strategist Steve Sosnick and Citi senior global economist Robert Sockin from earlier today.
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