U.S. Labor Market Shows Signs of Weakness Amid AI Impact and Trade Policies

According to BlockBeats, the U.S. labor market exhibited signs of weakness as nonfarm employment growth accelerated in September, yet the unemployment rate rose to 4.4%. The U.S. Bureau of Labor Statistics reported that nonfarm jobs increased by 119,000 in September, following a downward revision of August's figures to a decrease of 4,000 jobs. Economists surveyed by Reuters had initially predicted a rise of 50,000 jobs in September after an initial increase of 22,000 in August. Economists estimate that the current economy requires only 30,000 to 50,000 new jobs monthly to accommodate the growth of the working-age population, which is significantly lower than the approximately 150,000 needed in 2024. The unemployment rate increased from 4.3% in August to 4.4%. The growing prevalence of artificial intelligence is impacting labor demand, particularly affecting entry-level positions and leaving recent college graduates struggling to find employment. Economists highlight that AI is driving economic growth without corresponding job creation. Additionally, some experts argue that U.S. President Donald Trump's trade policies have created an uncertain economic environment, undermining businesses' ability to hire, especially small enterprises.