How to explain 4% growth and no jobs

[LONDON] As we enter the final quarter of a turbulent 2025, one of the biggest puzzles of the moment is how the US economy is growing at almost 4 per cent without creating any jobs. The answer may lie in artificial intelligence (AI), but proving that will be a challenge.

While US markets suffered a near heart attack over President Donald Trump’s tariff plans in April, they have since roared back, with the S&P 500 rallying by a whopping 33 per cent from its lows.

Meanwhile, the US economy is on track for 3.9 per cent annualised gross domestic product growth as the third quarter comes to a close.