Qatar National Bank (QNB) said that the US economy remains resilient despite the slowdown in the labor market and increased uncertainty, considering that the decline in the pace of employment reflects a gradual return to more balanced levels, rather than widespread economic weakness.
The bank explained in its weekly report that tensions between the United States and Iran and rising energy prices are putting pressure on business and consumer confidence, increasing the risks of inflation and slowing growth, but the robustness of the labor market continues to provide support for the economy.
He noted that job vacancies have fallen to about one job per unemployed person, compared to about two jobs in 2022, while unemployment benefit claims and layoffs have remained low.
The report added that real wage growth continues to support household purchasing power and consumer spending, which accounts for about 70% of the US economy, while artificial intelligence has begun to reshape demand for skills and jobs, without yet having a tangible impact on overall employment levels.
QNB concluded that the US labor market is moving towards equilibrium rather than deterioration, which strengthens the economy's ability to cope with energy, inflation and uncertainty shocks.
