Analysis of Kevin Hassett's Comments on AI-Induced Labor Market 'Quiet Time'

On November 17,2025, Kevin Hassett—top economic advisor to the Trump administration—commented on CNBC’s “Squawk Box” that AI-driven productivity gains are leading to a “quiet time” in the labor market as companies slow hiring [1]. This observation comes amid strong U.S. GDP growth in Q2 2025, creating a contrast between economic expansion and muted labor demand [1]. Hassett highlighted that entry-level roles (specifically new college graduates) are most affected, as firms prioritize leveraging AI with existing workers over onboarding new talent [1]. Reuters also reported Hassett’s mention of mixed signals in the job market [2].

1. GDP-Hiring Decoupling
   : The link between strong GDP growth and job creation appears temporarily broken due to AI productivity gains, a departure from traditional economic trends [1].
2. Entry-Level Vulnerability
   : New graduates face tighter labor market conditions as companies reduce entry-level hiring to capitalize on AI-enhanced productivity [1].
3. Temporary Outlook
   : Hassett’s assertion that the effect is temporary implies expectations of future adjustment (e.g., new job creation from AI or increased consumer demand) [1].

• Risks
  : Short-term challenges for new college graduates seeking entry-level positions [1]; potential policy gaps in addressing AI-driven labor shifts (logical extension).
• Opportunities
  : Employers may realize cost savings from higher productivity without increasing headcount [1]; policy discussions could lead to workforce reskilling programs to adapt to AI (logical extension).

• Speaker
  : Kevin Hassett (top Trump administration economic advisor) [1].
• Event Date
  : November17,2025 [1].
• Core Claim
  : AI → productivity gains → reduced hiring → “quiet time” in labor market [1].
• Context
  : Strong Q22025 GDP growth [1]; mixed labor market signals [2].
• Temporary Nature
  : Hassett emphasized the effect will not be long-term [1].