How to explain 4% growth and no jobs
The answer may lie in artificial intelligence, but proving that will be a challenge
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[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.
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