{"id":121466,"date":"2025-09-05T19:58:10","date_gmt":"2025-09-05T19:58:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/121466\/"},"modified":"2025-09-05T19:58:10","modified_gmt":"2025-09-05T19:58:10","slug":"recession-outlook-mark-zandi-says-weak-jobs-report-confirms-economy-fear","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/121466\/","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":2,"featured_media":121467,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,1548,85648,85655,164,1906,85650,85653,21718,85652,85651,85654,40352,85649,2489,85647],"class_list":["post-121466","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-business-insider","tag-cliff","tag-contracting-workforce","tag-economy","tag-edge","tag-full-blown-labor-recession","tag-job-addition","tag-labor-market","tag-mark-zandi","tag-moody","tag-overall-economic-strength","tag-revision","tag-top-economist","tag-us","tag-zandi"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/121466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=121466"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/121466\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/121467"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=121466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=121466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=121466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}