Full Video Transcript Below:

CAROLINE WOODS: Do we have some insights into why companies are hiring less? Is it because of tariff uncertainty? Is it AI replacing jobs? What is it?

BRETT RYAN: Yeah, so there are a few things. The big question is how much of this is being driven by supply versus demand factors. So supply factor being a sharp crackdown on immigration, deportations, and impediments to illegal immigrants showing up at work. That’s probably weighing on the establishment survey somewhat. But then versus demand factors, which would be employers slowing hiring. Now, in terms of it’s already been a slow hiring environment. And the JOLTS data from July that we saw earlier in the week pointed to more of the same, as opposed to a step shift into lower demand.

So I’d say it’s a combination of supply and demand factors. The main question for policymakers is how much of this is supply driven versus demand driven. There’s evidence on both sides. I would say that supply factors are probably the more dominant one at the moment. But, you know, that debate is certainly an open one.