We’re in an economic boom. Where are the jobs?
Vox
February 24, 2026
AI-Generated Deep Dive Summary
The U.S. economy is experiencing a unique paradox: record stock market highs and strong economic growth coexist with minimal hiring, leaving many Americans feeling stuck despite overall prosperity. This "jobless boom" reflects an unusual economic landscape where Wall Street thrives while Main Street struggles, driven by factors including post-pandemic corrections in hiring, Trump administration policies like tariffs and immigration restrictions, and the rise of artificial intelligence.
The post-pandemic hiring surge that characterized 2021-2023 has now shifted to a period of "right-sizing," where companies are reducing their workforce. While the U.S. economy recovered all pandemic-era job losses by June 2022, hiring remained strong until mid-2024, after which it plummeted. By 2025, monthly job gains dropped to just 49,000—a stark contrast to previous years. Many business leaders attribute this shift to a correction in overhiring during the recovery phase.
Trump's policies have significantly impacted the labor market. His tariffs disrupted supply chains and led to manufacturing layoffs, while his immigration restrictions reduced net migration for the first time in half a century. This has left fewer workers available for hiring, particularly affecting smaller businesses and industries reliant on immigrant labor. Additionally, federal workforce reductions due to policy changes further compounded job losses.
Despite claims that AI is replacing jobs, its direct impact remains minimal so far. However, companies are investing heavily in AI and automation, diverting funds from hiring. This shift reflects a broader trend where business leaders prioritize capital investments over labor, leading to weaker wage growth for workers. The portion of GDP going to worker wages hit a record low in 2025, underscoring the imbalance between corporate gains and labor stagnation.
This jobless boom matters politically because it highlights growing economic disparities and challenges for everyday Americans. While Wall Street benefits from AI-driven growth and wealthy spending, many workers struggle with limited opportunities and stagnant wages. The lack of hiring could hinder Republican efforts to improve economic perceptions ahead of the 2026 midterm elections. As policy uncertainty persists and firms remain cautious about expanding their workforce, the jobless boom is likely to continue into 2026, raising concerns about long-term economic stability for ordinary workers.
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Originally published on Vox on 2/24/2026