Labor markets in many economies "freeze"

According to the Financial Times, the labor market in many leading economies is freezing due to uncertainty about trade, taxes and the development of artificial intelligence (AI) tools.

Official data showed that in the three months to July, annual job growth was just 0.5% in the US and 0.4% in other G7 economies, well below forecasts for 2024.

Instead of cutting staff, companies are largely maintaining their existing workforce while slowing hiring as AI gradually reshapes the labor market and trade volatility could impact global growth.

Besides, workers with a more cautious mentality also tend to choose to continue sticking with their current job, instead of looking for a new job.

Jobs growth is "one of the key weaknesses in advanced economies," according to Simon MacAdam, deputy chief economist at consultancy Capital Economics.

In the US, job growth stagnated all summer, with even job cuts in June. With the exception of Japan, job growth has been slowing in other G7 economies for years, particularly in the UK, where employment has fallen by about 0.5% over the past year.

"We are in a low-employment, low-productivity economy," said Federal Reserve Chairman Jerome Powell.

Source: https://vtv.vn/thi-truong-lao-dong-tai-nhieu-nen-kinh-te-dong-bang-100251006145555722.htm