America’s labour market is bracing for a sharp slowdown as President Donald Trump’s economic policies take their toll, with economists warning of a looming “Trump slump”.
Jobs growth in the US is set to collapse by almost two-thirds this year, according to forecasts from Capital Economics. The consultancy expects just 690,000 new jobs to be created over the next 12 months – 64 per cent fewer than the 1.9 million added across 2024, before Mr Trump entered the White House.
Bradley Saunders, economist at Capital Economics, said: “Outside of the pandemic, the last time jobs growth was this low over a 12-month period was during the recession caused by the global financial crisis.”
The figures mark a steep deterioration for the world’s largest economy. Growth of 690,000 jobs would put the market on par with 2010, when the US was still reeling from the fallout of the credit crunch.
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