Is the US Job Market Broken? Labor Market Crash, AI, and the New Economy

Summary

Market Mondays: "Is the US Job Market Broken? Labor Market Crash, AI, and the New Economy"

Date: September 14, 2025
Hosts: Earn Your Leisure (EYL Network)
Guest/Experts: Ian Dunlap & various financial analysts

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Episode Overview

In this episode, the hosts and experts on Market Mondays dive deep into the recent alarming shifts in the US job market. With new data suggesting jobs are rapidly disappearing, AI adoption accelerating, and traditional employment routes faltering, they tackle urgent questions: Is the US economy breaking down? How should everyday people pivot to survive and thrive? As always, they share sharp investment strategies, answer real audience questions, and debate the future of money and employment in America.

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Key Discussion Points & Insights

1. The Job Market Breakdown: Data Signals Crisis

• Stark Stat: Only 22,000 jobs added in August; a previously unseen reversal since 2021 where unemployed Americans now outnumber job openings.
  • "There are more Americans out of work than there are jobs open for the first time since April of 2021." (Economist/Analyst, [02:16])
• Job openings dropped by 176,000 to 7.1 million, while 7.2 million people remain unemployed.
• "This is pretty disturbing... Simple supply and demand here." (Economist/Analyst, [02:54])

2. Structural Shifts: AI, Debt, and Government Strategy

• AI is actively reducing available jobs.
• The US government is now investing directly in companies (like Intel), acting as a venture capitalist—primarily to lower national debt.
• Job numbers are being repeatedly revised down; sometimes by over 100,000, which erodes trust in official data.
• "The job market will not be good for the next three or four years." (Financial Expert, [04:00])

3. Entrepreneurship & Alternatives Become Necessity

• Traditional advice to "just get a job" is outdated—especially for marginalized populations.
  • "There's no jobs that you can get in today's economy... Entrepreneurship on a certain level is not really a luxury, it's a necessity." (Economist/Analyst, [06:24])
• Growth in gig economy and commission-based jobs; investing and self-employment discussed as critical strategies.
• Social media (e.g., TikTok) communities are emphasizing alternative income streams like investing and online sales.
• The Black community, and especially Black women, face significantly higher unemployment:
  • "Unemployment for Black women is at the highest levels since 2020—actually 3% higher than the national average." (Host, [06:08])

4. Monetary Policy & Market Effects

• Rate cuts are now the go-to government response as job numbers falter, but skepticism remains about how much longer rates can be cut.
  • "If less people are working, there's not as much money out there. Rates are going to get lowered... Who does that help? That helps people who invest." (Host, [07:50])
• Lower rates mainly benefit tech and large investors, not everyday workers.

5. Ownership and Wealth Building

• Investing is crucial, but only possible if you have spare capital.
  • "You can't invest what you don’t have." (Economist/Analyst, [08:34])
• Analogy using the music industry:
  • "You can't sell what you don't own." (Economist/Analyst, [09:05])
  • Own your assets and intellectual property; renting or leasing success undermines long-term wealth.

6. A Divided Economy: Different Realities by Income

• There’s a growing divide between those making ~$80K or less (recession conditions) and those over ~$200K (boom cycle).
  • "It's like a sub $100,000 recession. And if you make more than $200,000, you're having a boom cycle. I've never seen that." (Financial Expert, [12:15])
• AI means companies can do more with less; rising stocks and profits for companies do not translate into new jobs.
• Consumer sectors like housing and retail will suffer if mass unemployment persists, while tech stands to benefit.

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Notable Quotes & Memorable Moments

• On AI's Impact:
  "When you have artificial intelligence that can do the job, the company is still making money... The ship is still running. What's going to happen is that you're going to have a lot of people that's going to have to start figuring things out." (Economist/Analyst, [10:15])

• On Traditional Job Advice:
  "It's very difficult to get a job that will pay you enough to maintain a lifestyle worth living in today's economy. So entrepreneurship on a certain level is not really a luxury, it's a necessity." (Economist/Analyst, [06:24])

• On Wealth Gaps:
  "The people that I know that are doing well are having blockbuster quarters. The people that are not doing well are having some of the worst years I've seen since 2009 and 2010." (Financial Expert, [12:00])

• On Planning & Policy:
  "We need to have a nominal rate for a 10-year period so everyone can plan accordingly... We're being too emotional with reactive policy." (Financial Expert, [11:00])

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Important Timestamps

• 02:15: Unemployment overtakes job openings for the first time since 2021.
• 04:00: Job market outlook for the next 3-4 years.
• 06:08: Disproportionate unemployment among Black women.
• 06:24-07:21: Shift from traditional "get a job" advice to necessity of entrepreneurship and alternative income.
• 07:45-08:32: Impact and limits of interest rate cuts; who truly benefits.
• 08:34-09:05: Analogy highlighting importance of ownership in business and life.
• 10:15: AI's effect: profits up, jobs flat or down.
• 12:15: The "tale of two economies"—deepening income divide.

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Tone & Takeaways

• Straightforward, candid, and sometimes urgent: The hosts and experts are direct about the depth of the problem, and challenge listeners to adapt quickly.
• Practical: Repeated calls to invest, own assets, and explore non-traditional sources of income.
• Critical of mainstream narratives and reactive policy: Skepticism toward government statistics and central bank strategies.

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Summary

This episode of Market Mondays paints a sobering yet actionable portrait of a structurally shifting US economy. The old rules of "just get a job" do not hold in a landscape where artificial intelligence, government interventions, and rising inequality have upended traditional employment. The panel stresses the need for ownership, investing, entrepreneurship, and adapting as necessities—not luxuries. If you're earning under $100K, you're likely feeling recession conditions; above $200K, the boom is real. The time to act, invest in yourself, and diversify income is now.

Transcript

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[Economist/Analyst]

Is the U S economy already breaking down with only 22 jobs added in August and unemployment rising? Are we headed so but then also also this is an interesting stat that we put on the EYO page. As far as the article is concerned that oh the labor market for the first time. Yeah okay, so there are more Americans out of work.

[Host]

Yeah.

[Economist/Analyst]

Then there are jobs open for the first time since April of 2021. So okay this is pretty disturbing situation. You know when it looks when it there's the latest bureau in July job openings dropped to 176,000, dropped 176,000 to 7.1 million while the number of unemployed people rose to 7.2 million. So simple supply and demand here.

[Host]

And.

[Economist/Analyst]

Says a lot about the times that we're in. But does this paint a broader picture of a downturn in the economy or is it just Something that we're going to have to deal with as far as people not being able to get jobs because it's a new world that we live in.

[Financial Expert]

It's a new world and it's a lot of it has been caused by the macro issue of the mismanagement of the debt of the United States of America. Even the United States taking a position in intel and other companies over the next three or four years. It's interesting that there are buying into companies acting like a venture capital company to pay down the debt and entitlements like pensions and Social Security. That's really scary. And on top of that combination of AI is taking a lot of the jobs away. The part that's really scary to me is how much they're revising down. So when I see that they're revising in a month or two a hundred thousand dollar jobs. I mean excuse me, a hundred thousand jobs. That is incredibly scary to me that the numbers are being reported one way to meet whatever demand is needed and then a month they're correcting and there's an error of 125000 jobs. I want to be very clear the job market will not be good for the next three or four years.

[Economist/Analyst]

I mean will the job market ever be good? Well this also goes back to a conversation that Tabitha Brown had. We could talk about it on blackout but we can even have it here. Oh she encouraged. Tabitha Brown encouraged shout out to Tabitha speaker and good person. She encouraged paraphrasing entrepreneurs to get a job if that if your business is not working. And that's. That created a whole thing piece. Well there's why the think piece. There's no job.

[Financial Expert]

Maybe I'm out of tune.

[Economist/Analyst]

Jobs. There's no jobs that you can get in today's economy. Not to say there's no jobs but that is. It's difficult to get a job. So that's what I was saying before even on black I remember I was saying like I, I I. There's a lot of people that don't work that are not even rich. But like, like there's a lot of people. The, the number of people that don't work that's still surviving is high. What are they doing for money? I'm not 100 sure but it's, it's gonna be, it's gonna be a lot less like okay the, the whole thing with even with Gary Vee was saying like you need to start selling things online. Online shopping is a big thing on Tick Tock when they say like okay, Vlad 10F says that you have to start investing because you know that's going to supplement income on a certain level for you know, not high paying jobs or just not jobs period. Like we have to have a real conversation that we're headed in the the New York Times or Wall Street Journal posted a good a post about how black black people specifically are finding a harder time to get jobs. They interviewed a black woman who was saying that, you know, she went to college, got a degree, the whole thing and now she feels like she's been cheated.

[Host]

Yeah. Just to add to what you just said because I want you to finish that point. The, the number of unemployment black women is at the highest levels since that, that same metric, I think 2020, they're actually 3% higher than the national average.

[Economist/Analyst]

The gig economy. At a certain point we have to really start having uncomfortable conversations when people say like okay, just get a job. There's no jobs to get. There's no jobs to get. So how are you going to get a job if there's no jobs to get? It's very difficult to get a job that will pay you enough to maintain a lifestyle worth living in today's economy. So entrepreneurship on a certain level is not really a luxury, it's a necessity.

[Financial Expert]

Yeah.

[Economist/Analyst]

Or commission based job or the gig economy or investing. You have to find alternative ways to make money than the traditional way that we was taught. As far as go out and get a job, that's not even possible. A lot of that's. If there's more people that need jobs than it's actual jobs, that means that somebody's not getting a job. A lot of people are not a.

[Host]

Lot of somebody's on, you know, it's.

[Economist/Analyst]

Not possible to get a job.

[Host]

How, how strategic do you think the timing of all this is? Right. You have a president and an administration that is at the Fed chair's door every day, every day being critical of lowering rates. Lowering rates. When job numbers come back like that, what is the inverse reaction? Rates are going to be lowered. Right.

[Financial Expert]

But how much longer can we lower rates?

[Host]

This short term, Short term. Right. Like so now September becomes nearly 100 chance after those job reports were revised and now it's 22 000. If less people are working right. Then there's not as much money out there. Rates are going to get lowered yet I don't know how many times they can lower it. Right. It went from a quarter percent to now maybe half a percent. Who does that help? That helps people who invest Right. Because you're going to see money become cheaper. Tech. Tech companies for sure will benefit from because the cost of labor is going to go down. The cross for merchandising is going to. The infrastructure prices are going to go down. That's going to help. Which is why what Vlad is saying, and I said it all week last week, like you have to.

[Financial Expert]

Yeah. It's not even optional anymore.

[Economist/Analyst]

But it's something both. I think you can't invest if you don't have money. That's important. You can't invest what you don't have. Yeah, that's important. And that goes back to sidebar, the little, Little Baby situation. This one vital part that we left out from young thugs when he's. When he's talking about P. Cutting Little Baby up the deal. This is important to understand for all the entrepreneurs out there. One thing that the great late Irv Gotti told us that was very important is that you can't sell what you don't own. One key component that young thug failed to mention, and he kind of contradicted himself on that interview when he said that little baby doesn't own his masters. You can't sell what you don't own. He didn't even have the option of selling his catalog because he doesn't own his catalog. So that's a great point. When you're in business, you need to understand you can't sell what you don't own. That's important.

[Host]

Yeah. He said he also owns 50 of Gunless Masters.

[Economist/Analyst]

Yeah, but he said. He also said he never made no money. That's bad business.

[Host]

Yeah.

[Financial Expert]

Too much emotion. We'll talk about it on blackout, though.

[Host]

Yeah, yeah, yeah.

[Financial Expert]

I'd have been collected if that. If you're not pulling up to my mama house, I think.

[Host]

So the two things here, two things happening. The labor market is slowing down, but is the economy.

[Financial Expert]

The labor market, I'm gonna be clear, is in a correction. It's in a crash.

[Host]

That's fair. That's fair. Is in the correction, but the economy is not in the correction. So what this is. This is now goes back to the. I know we go. Like we used to debate this all the time. Are we headed for a soft landing or is there going to be a correction for the economy?

[Economist/Analyst]

Neither, because it's not directly correlated anymore.

[Financial Expert]

Different ones.

[Economist/Analyst]

When you have. When you have artificial intelligence that can do the job, the company is still making money.

[Host]

There you go.

[Economist/Analyst]

So the. The ship is still running. What's going to happen is that you're Going to have a lot of people that's going to have to start figuring things out.

[Financial Expert]

And the tough part is, okay, let's say they drop interest rates dramatically, stocks will go up. Tech would do even better. They're not going to hire more. The capex is going to go up into AI.

[Host]

But there are, there are sectors that will be affected. If people don't have the capital to purchase, then obviously you can. Housing will be affected, retail will be affected, all those will be affected for sure.

[Financial Expert]

Tech, different tech would be okay, of course. But my thought is to even and this is way above my pay degree, Federal Reserve or anything in St. Louis. We aren't planning 10 years at a time. We're being too emotional. Like if you're going to have a rate cut because they keep saying 100 and then it doesn't happen. We need to have a nominal rate for a 10 year period so everybody can plan accordingly. Even with the tariff thing, when you say okay, I'm gonna enact tariffs and then 90 day extension, not everyone is able to adjust on a fly. Some of these things are going to take a year to set in. But there's a tale of two economies. If you're making 200, 250 and up versus if you're at 80 and lower, those are two different economies and they're not managing well. For those who are making less than 85 a year and the impacts that it's going to have, I've never seen disparity. The people that I know that are doing well are having blockbuster quarters. The people that are not doing well are having some of the worst years I've seen since 2009 and 2010. I've never seen that. At least in 2009 when the market was tanking, everybody. Yeah, yeah, yeah, everybody was affected. Now it's like a sub 100,000 a year recession. And if you make more than 2,000, you're having a boom cycle. I've never seen that.

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