Economist warns new jobs data shows stalled economy and rising recession risk

A grim new jobs report points to mounting economic trouble under the Trump administration, University of Michigan economist Justin Wolfers warned Tuesday. He said unemployment has climbed to 4.6 percent, while wage growth weakens and earlier job gains appear poised for steep downward revisions. Wolfers told MSNOW that the economy may have created virtually no jobs since April, calling the labor market stalled or even slipping backward. Citing the Sahm Rule — a key recession indicator triggered when unemployment rises by half a point — Wolfers said the data suggests the U.S. is now on the cusp of a recession, adding that since April even Canada has added more jobs than the United States.

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