NextFin news, Federal Reserve Governor Christopher Waller issued a warning on Friday, October 10, 2025, that the US labor market is currently in poor condition, with job growth likely having been negative in recent months. Speaking in an interview on CNBC, Waller cited data from the ADP processing firm showing a loss of 32,000 jobs in September, which he said aligns with emerging data from the Bureau of Labor Statistics.
Waller explained, "Job growth has probably been negative the last few months. It doesn’t look like it’s doing much better. Anecdotally... I don’t hear anybody with big hiring plans. All I ever hear is, ‘We’re not backfilling, we’re not firing, we’re holding off any job things.’ That’s the anecdotal evidence."
This assessment was echoed by Ed Al-Hussainy, a rates strategist at Columbia Threadneedle Investments, who described the job market as "bed rotting," with employers hesitant to make significant hiring commitments amid economic uncertainty. Al-Hussainy cautioned that the situation could deteriorate further, potentially triggering a recession scare if consumer spending declines.
Earlier in the week, Moody’s Analytics chief economist Mark Zandi estimated that there was "essentially no job growth" in the last month, highlighting consumer pessimism about the labor market not seen since the end of the COVID-19 pandemic. Zandi noted that this is a strong predictor of rising unemployment, which likely increased again in September.
Abby McCloskey, a Bloomberg columnist and former economist at the American Enterprise Institute, noted that even supporters of President Donald Trump are increasingly rating the economy unfavorably. According to recent Pew Research Center data, only 44% of Republicans now view the economy as excellent or good, down from 81% during Trump’s first term before the pandemic.
McCloskey pointed out that despite a record stock market and stabilized inflation, factors such as tariffs and political uncertainty are weighing on the economy. She said, "When a voter balances the tax cuts from the One Big Beautiful Bill Act against tariffs raising prices on everything from groceries to clothes, it feels like running just to stay in place."
The warnings come amid broader concerns about the US economy's trajectory, with labor market weakness signaling potential challenges ahead.
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