U.S. Economy Grows Without Jobs, Leaving Economists Uneasy Article originally posted on Globe St. on January 9, 2026 Economic growth is surging, but jobs aren’t following suit—and that has top economists worried. KPMG Chief Economist Diane Swonk called the latest figures “gut-wrenching” and told Fortune, “We’re growing, but we can’t generate jobs.” While the economy’s headline numbers appear healthy, the details reveal cracks. Real GDP grew at an annualized rate of 4.3% in the third quarter of 2025, according to the Bureau of Economic Analysis’ initial estimate released December 23. Yet consumer spending—typically responsible for about 69% of GDP—accounted for just over half of that growth, signaling uneven momentum beneath the surface. The labor market data reinforced the same uneasy message. The Bureau of Labor Statistics’ Job Openings and Labor Turnover Summary showed little change in November, with 7.1 million job openings and roughly 5.1 million hires and separations apiece. Workers continue to hold onto their positions, as quits totaled 3.2 million and layoffs 1.7 million—both flat from the prior month. “Quit rates are well into the lows hit during the pandemic recession and the second lowest levels since January 2014, when the labor market was still attempting to recover from the global financial crisis,” Swonk wrote on X. Private-sector hiring slowed further, according to the national employment report from ADP and the Stanford Digital Economy Lab. Employers added just 41,000 jobs in December. “Small establishments recovered from November job losses with positive end-of-year hiring, even as large employers pulled back,” ADP Chief Economist Dr. Nela Richardson said in a prepared statement. Swonk noted on X that some of December’s modest gains likely reflected seasonal and technical factors rather than renewed momentum. “ADP saw job gains in December but still subdued,” she wrote, adding that the late timing of Thanksgiving compressed holiday hiring into December and that catch-up hiring after the government shutdown “buoyed the gains.” A similar distortion occurred the previous year, she said, when holiday hiring appeared in December 2024 rather than November. Other analysts pointed to demographic pressures exacerbating the labor slowdown. “Older workers are increasingly remaining in the labor market for longer” due to “increased pressure on retirement savings because of affordability concerns,” ZipRecruiter Chief Economist Nicole Bachaud wrote in a note cited by Fortune. The ADP breakdown highlighted where the softness is most apparent. Key sectors such as information lost 12,000 jobs and professional and business services shed 29,000. Regionally, New England lost 11,000 jobs, while the West—with its heavy concentration of technology and consulting firms—subtracted 61,000. Though employers haven’t begun cutting deeply, Swonk warned the balance could shift quickly. Hiring demand has slowed, workers are staying put and the economy’s apparent strength masks a labor market struggling to keep pace with growth.