Hasset gave the market a "preventive injection" before the non-farm report was released, indicating that a slowdown in employment growth does not necessarily mean an economic cooling.
Hassett said on Monday that with population growth slowing down, the number of new jobs added in the United States in the coming months may be lower than in the past, but this does not mean that the economy is weakening.
Kevin Hassett, Director of the White House National Economic Council, said on Monday that with population growth slowing down, the number of new jobs added in the US in the coming months may be lower than in the recent past, but this does not mean that the economy is weakening.
Hassett stated in an interview, "Given the current high GDP growth, a slight decrease in the number of new jobs can be expected." He emphasized that if the upcoming employment data continues to be lower than the market's usual levels, there is no need to panic because population growth is slowing down and productivity growth is rapidly increasing.
According to market expectations, the January non-farm employment report to be released on Wednesday is expected to show that US employers added around 69,000 new jobs that month, and the unemployment rate is expected to remain at 4.4%. The report will also include historical revision data, which is expected to show a significant downward revision in the one-year non-farm employment data up to March 2025.
Hassett also pointed out that the "break-even employment growth rate" needed to maintain a stable unemployment rate is currently "significantly lower" than during the time of former President Biden. This change reflects adjustments in the operating conditions of the US labor market amidst changes in population structure and productivity.
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