AI Driving Labor Market Quiet Period, Says Hassett

Kevin Hassett, Trump’s top economic adviser, says AI is boosting worker productivity so rapidly that companies may temporarily slow hiring.

sarah

Nov 17, 2025 - 22:17

AI Driving Labor Market Quiet Period, Says Hassett

Kevin Hassett, a top economic adviser to the Trump administration, said on Monday that artificial intelligence (AI) could boost worker productivity so much that companies will have to slow down hiring.

"I think there are mixed signals in the job market," the National Economic Council director said on "Squawk Box." He added that he has seen "actually very positive signs in the production markets."

After citing rapid growth in US GDP in the second quarter of 2025, Hassett said, "There may be a little, almost, calm period in the labor market, as companies are finding that AI is making their workers so productive that they won't need to hire new people fresh out of college."

However, he said that any slowdown in the market caused by AI would be temporary.

"Because production and income are increasing so much, a free market will act relatively quickly because, you know, new ways of spending money are emerging," Hassett said.

Fears of AI replacing entry-level jobs are nothing new, but these fears have rarely been expressed by the Trump administration, which has supported this emerging industry and taken steps to accelerate its growth in the US.

President Donald Trump has signed several executive orders aimed at reducing regulatory barriers and promoting the development of AI infrastructure, including data centers.

David Sacks, Trump's "czar" for AI and cryptocurrency, stated in early November that "there will be no federal bailout for AI." His comments came after OpenAI CFO Sarah Frier stated that her startup wanted a federal "backstop" for investment in its infrastructure. Frier later retracted her comments.

Hassett's comments come as Trump and his allies have tried to refocus their message on affordability, after Democratic candidates emphasized the issue in key election results earlier this month.

Hassett said on Monday that, contrary to the president's claims, overall grocery prices haven't decreased during Trump's second term.

"People are still trying to climb out of the big hole dug by the previous administration's policies," he said.

He said the average monthly grocery shopping cost increased significantly during the Biden administration and "hasn't increased at all" since Trump returned to the White House.

He added that "purchasing power has increased."

"It's surprising to me that we're somehow being blamed for the cost problem," he said.