It makes for a weaker starting point, as companies see new opportunities around the corner to use AI to automate their work. It's not a new trend: These sectors showed weak job creation or outright job losses for the last couple of years of the Biden administration. But it is striking that a GDP surge fueled by data center and AI investment hasn't been enough to generate more robust hiring.
Reality check: At the end of July Lutnick posted to X that "the Trump Economy has officially arrived," citing a strong GDP report. Since then, a combination of weak jobs data and hot inflation reports has painted a very different picture of an economy struggling to grow. Just Thursday, the Consumer Price Index showed inflation rising for a fourth consecutive month, while initial jobless claims were the highest in years.
On Saturday's Velshi from MSNBC, the host brought up the new Gross Domestic Product (GDP) numbers released by the Commerce Department which showed a large 3% growth in the second quarter under President Donald Trump.
In the G20 area, GDP growth saw a mixed performance in Q1 2025, with overall growth of 0.8%, as contractions were noted in Korea and the U.S.
California's recent rise to the world's fourth-largest economy magnifies a paradox where prestigious GDP figures contrast starkly with the economic struggles of average residents.
