Former Trump economic adviser Gary Cohn says tariffs are the reason you're having a hard time finding a job | Fortune

"Gary Cohn, who served as director of the National Economic Council during the first Trump administration, said businesses are feeling the insecurity of rising input costs thanks to tariffs. And because companies feel they can't raise prices for consumers, they turn to what they can control. "The one lever they can pull to make sure they keep their margins intact is they can cut down on the cost of labor," Cohn said in an interview on Face the Nation."

"White House spokesman Kush Desai said in a statement to Fortune that President Trump's tariffs have led to trillions of dollars of investment for building in the U.S. and hiring Americans. "The Administration remains focused on implementing a full suite of supply-side growth policies like tax cuts, deregulation, and energy abundance to reduce cost and restore the economic dynamism that Americans experienced during President Trump's first term.""

"Some of the biggest tech companies in the world have ramped up layoffs this year including Google, Microsoft, and Meta. Overall, just under 90,000 tech workers have been laid off this year alone at 204 companies, according to Layoffs.fyi. Cohn, now the vice chairman of IBM, said these job cuts have already started to affect the economy. Recent jobs data from the Bureau of Labor Statistics revealed only 22,000 jobs were added in August, down from 79,000 in July."

Gary Cohn said tariffs are raising input costs and prompting businesses to cut labor to protect margins. Companies that cannot raise consumer prices are reducing labor costs as the available lever. The White House said tariffs spurred trillions in U.S. investment and supports supply-side policies like tax cuts, deregulation, and energy expansion. Major tech firms including Google, Microsoft, and Meta have increased layoffs, with just under 90,000 tech workers laid off at 204 companies. Cohn said those cuts are affecting the economy. August job gains fell to 22,000 from 79,000 in July, and the Fed lowered rates by a quarter point as hiring cooled.

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