{"id":203216,"date":"2025-09-05T20:41:18","date_gmt":"2025-09-05T20:41:18","guid":{"rendered":"https:\/\/www.europesays.com\/us\/203216\/"},"modified":"2025-09-05T20:41:18","modified_gmt":"2025-09-05T20:41:18","slug":"recession-outlook-mark-zandi-says-weak-jobs-report-confirms-economy-fear","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/203216\/","title":{"rendered":"Recession Outlook: Mark Zandi Says Weak Jobs Report Confirms Economy Fear"},"content":{"rendered":"

No matter how you slice it, the August jobs report<\/a> showed a weakening labor market. Nonfarm payrolls came in well below forecasts, while unemployment rose.<\/p>\n

Moody’s economist Mark Zandi<\/a> has been closely watching what he describes as a “labor recession<\/a>” unfold, with revisions for June showing a contracting workforce for the first time since 2020.<\/p>\n

Friday’s report did nothing to dissuade him of the notion, and now the Moody’s economist told Business Insider he’s looking ahead for signs that the job-market downturn could spill into the broader economy.<\/p>\n

Zandi sees a potential bump in the road coming on September 9, when preliminary benchmark revisions<\/a> come in for earlier in 2025. The markdown in job additions is expected to be significant.<\/p>\n

Zandi also noted that these downward revisions and outright job losses are coming without a significant increase in layoffs. If companies were to accelerate on that front, Zandi says it would worsen the labor recession and possibly impact overall economic strength.<\/p>\n

“If businesses start laying [people] off, then I think this will not just be a jobs recession, will be an overall economic downturn,” he told BI.<\/p>\n

Zandi compared the current state of the US economy, as reinforced by the slowing labor market, to someone clinging to the edge of a cliff.<\/p>\n

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“Everything is clinging tightly to the lip of the cliff,” he stated. We had 10 fingers on the edge of the cliff a couple months ago, we now [have] seven fingers.”<\/p>\n

“A couple more fingers, and we’re going, then we’re going over the edge,” he said.<\/p>\n

The economist added that while more interest rate cuts are likely coming<\/a> as a result of the jobs report, they still likely won’t be enough to stave off recession.<\/p>\n

“A lot of the benefit of the lower rates is already in the [market] because investors anticipated the rate cuts,” he said.<\/p>\n","protected":false},"excerpt":{"rendered":"No matter how you slice it, the August jobs report showed a weakening labor market. Nonfarm payrolls came…\n","protected":false},"author":3,"featured_media":203217,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,4381,112133,112137,79,11092,112134,112135,4506,81567,19619,112136,75704,84750,67,132,68,112132],"class_list":{"0":"post-203216","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-business-insider","10":"tag-cliff","11":"tag-contracting-workforce","12":"tag-economy","13":"tag-edge","14":"tag-full-blown-labor-recession","15":"tag-job-addition","16":"tag-labor-market","17":"tag-mark-zandi","18":"tag-moody","19":"tag-overall-economic-strength","20":"tag-revision","21":"tag-top-economist","22":"tag-united-states","23":"tag-unitedstates","24":"tag-us","25":"tag-zandi"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115153632410449145","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/203216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=203216"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/203216\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/203217"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=203216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=203216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=203216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}