Worries about the U.S. economy are growing amid President Trump’s tariffs, government layoffs, and spending cuts. While the labour market shows a healthy unemployment rate of 4.1% and 151,000 jobs added in February, there is a troubling increase in part-time employment due to economic factors, with 460,000 more people affected. Notably, the leisure and hospitality sectors saw a loss of 16,000 jobs, indicating a potential decline in consumer spending.
Since January, economic policy uncertainty has surged by 41%, suggesting a looming recession. Nicholas Bloom, a Stanford economist, expressed his concerns, stating, “I have an increasing fear we will enter into what may become known as the ‘Trump recession.’” Ongoing policy turbulence and tariffs could push the economy into its first recession in five years, a situation reminiscent of the previous recession caused by the pandemic.
Trump seems unfazed by the instability he is provoking, asserting that the temporary challenges of tariffs will ultimately bolster local production and economy. However, if these tariffs fail, ordinary Americans might bear the brunt, facing job losses, stagnant wages, and rising inflation. John Silvia warned that the “dark alley of tariffs signals higher inflation, slower economic growth, and a weaker U.S. dollar.”
The Federal Reserve’s recent beige book highlights signs of growing uncertainty, featuring 47 references to economic instability, compared to just 17 previously. Many businesses are expressing concern over the tariffs, leading to decreased optimism about future prospects, according to the Fed’s New York branch.
Treasury Secretary Scott Bessent highlighted the country’s reliance on government spending, suggesting that a detox period is necessary for economic recovery. The ongoing initiative, managed by Elon Musk’s Department of Government Efficiency, is leading to a reduction in federal employment, which could soon impact job statistics. Approximately 75,000 employees opted for the deferred resignation plan, with many more layoffs expected ahead.
Economic concerns are escalating in the U.S. due to tariffs and government job cuts, with unemployment steady at 4.1%. The part-time job market has increased, and a spike in economic uncertainty indicates recession risk. Experts highlight the potential adverse effects of tariffs on everyday Americans, with signs of decreased business optimism. The government’s strategy shifts towards reducing reliance on spending, impacting federal employment.
In summary, the U.S. economy faces mounting concerns due to tariffs, workforce layoffs, and increased uncertainty. The recent economic indicators paint a mixed picture where job growth persists, yet part-time work rises and significant job losses occur in certain sectors. Economists warn that the ongoing policy volatility under Trump may plunge the nation into a recession, influencing everyday Americans with job and wage impacts. Effective economic recovery might require a recalibration of reliance on government support as the administration seeks to reshape economic dynamics.
Original Source: www.hurriyetdailynews.com
