He also noted that there is no question that the U.S. economy is currently in the midst of the biggest productivity boom since the 1990s.
- Hassett said that the introduction of the internet and AI has a similar impact on economic data.
- The NEC Director also stated that he feels the “game” of the government shutdown is done with, even though a few issues need to be ironed out between Republicans and Democrats.
- Hassett’s comments come ahead of the U.S. employment report that is due to be released on Wednesday, and the weekly jobless claims report due Thursday.
White House National Economic Council Director Kevin Hassett reportedly said on Monday that there could be a series of lower job numbers due to a combination of unusual circumstances and an AI-led productivity boom.
“One shouldn’t panic if you see a sequence of numbers that are lower than you’re used to, because again, population growth is going down and productivity growth is skyrocketing. It’s an unusual set of circumstances,” Hassett said during an interview with CNBC.
He also noted that there is no question that the U.S. economy is currently in the midst of the biggest productivity boom since the 1990s. Hassett’s comments come ahead of the U.S. employment report that is due to be released on Wednesday, and the weekly jobless claims report due Thursday.
AI-Led Productivity Boom
The NEC Director said that the introduction of the internet and AI has a similar impact on economic data. “AI is making it so that every company, from Caterpillar on up, is finding that it’s more productive when it does stuff. And with higher productivity, they get higher profits,” Hassett said.
The question, he noted, is what will happen to jobs as productivity rises. “Productivity skyrockets, profit skyrockets, GDP skyrockets, but then all of a sudden, you’re making 20 widgets with one fewer person, and then that person has to find a job,” he added, noting that job transitions could happen.
Hassett On Likelihood Of Government Shutdown
Hassett also said he feels the “game” of the government shutdown is done with, even though a few things need to be ironed out between Republicans and Democrats.
He added that he hasn’t spoken to anyone on either side of the aisle who is interested in another shutdown.
Layoffs Highest Since 2009
Meanwhile, layoffs in January hit the highest levels since 2009, with U.S.-based employers announcing 108,435 job cuts during the month, according to the latest report by consulting firm Challenger, Gray & Christmas.
The firm stated that layoffs last month were the highest since January 2009, when 241,749 job cuts were announced.
Employers also announced 5,306 hiring plans in January, which was the lowest total for the month since Challenger began tracking hiring plans in 2009.
U.S. equities declined in Monday’s opening trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.04%; the Invesco QQQ Trust ETF (QQQ) fell 0.14%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.52%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.
The iShares 7-10 Year Treasury Bond ETF (IEF) was down by 0.14% at the time of writing.
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