A new era for weight-loss drugs

Summary

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Marketplace Morning Report

Episode Summary: "A New Era for Weight-Loss Drugs"

Date: December 23, 2025
Host: Sabri Benishour, for David Brancaccio

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Episode Overview

In this episode, the Marketplace Morning Report zeroes in on major business and economic news influencing the close of 2025. The lead story examines the approval of an affordable, oral version of the popular GLP-1 weight-loss medication Wegovy, which could signal a major shift in access and costs for Americans seeking obesity and diabetes treatments. Additional coverage includes the state of U.S. consumer confidence ahead of the new year and an exploration of the puzzling rise in long-term unemployment despite economic growth.

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Key Discussion Points & Insights

1. Affordable Pills: A Game Changer for Weight-Loss Drugs

[00:50 - 02:17]

Main Points:

• FDA has approved a once-a-day pill form of Wegovy (GLP-1 drug) for weight loss, expected to dramatically lower costs compared to the injectable version.
• Novo Nordisk, the producer, plans to introduce the pills at a starting price of $150/month—much less than the injectable’s $1,000/month.
• Full pricing details will emerge in early January when the pills hit the U.S. market.
• This development could expand access for millions, particularly those unable to get insurance coverage for the pricey injectable.
• The wider adoption of GLP-1 drugs is already having ripple effects on insurance, as a recent insurer-funded study found employer health plans covering these drugs faced premium hikes as high as 14%.

Notable Quote:

“The likelihood of a lower cost pill could help many people who currently can’t access GLP-1 medications because their insurance plans won’t cover the expensive treatments for weight loss alone.”
— Nova Safo [01:45]

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2. Consumer Confidence Still Subdued as Year Ends

[02:17 - 04:07]

Main Points:

• The Conference Board’s Consumer Confidence Index is expected to show a modest improvement after significant drops, partly attributed to the U.S. government shutdown.
• Economic anxiety persists due to high living costs and pessimism about the job market; consumer sentiment remains 28% below last year.
• “Strain on both sides of their budgets”: Americans are worried not just by high prices but also by concerns over future incomes.
• Most surveyed expect the job market to worsen, which could curb discretionary spending in early 2026.
• On a brighter note, larger tax refunds stemming from Republican tax cuts may boost sentiment, especially for wealthier families.

Notable Quotes:

“They're feeling strain on both sides of their budgets, they remain pretty frustrated by the persistence of high prices, and they're also worried about their incomes in the year ahead.”
— Joanne Hsu, University of Michigan [02:53]

“We're sort of in an uncertain period for most people, and so what I suspect is, is that that will…particularly for discretionary purchases, continue to be a little bit of a limiter on growth.”
— Aaron Charris, Bain & Company [03:25–03:36]

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3. Long-Term Unemployment Defies Economic Growth

[05:37 - 08:25]

Main Points:

• Despite economic expansion, the number of long-term unemployed (jobless >6 months) has grown by 12% over the previous year, totaling 1.9 million in November.
• Chris Farrell, senior economics contributor, attributes this to long-term shifts in job-seeking habits: digital applications have made it easier to apply to multiple jobs, flooding HR departments and slowing down hiring.
• From the 1980s to the 2010s, the average unemployed worker multiplied their monthly job applications from three to seven.
• AI is expected to exacerbate the problem by making mass applications even easier, increasing the time it takes to match workers with jobs.
• Wage inequality is influencing job selection: many workers are holding out for better pay rather than accepting low-wage positions.
• The current labor market is characterized by “low fire and low hire”—businesses are cautious, and workers are reluctant to quit, resulting in reduced job churn and increased long-term joblessness.
• Extended unemployment has well-documented negative financial and mental consequences.

Notable Quotes:

“My expectation is [AI is] going to make it worse because it just makes it ever easier to send out multiple job applications and employers are likely to find themselves…with more applicants for posted positions than ever.”
— Chris Farrell [07:05]

“You look at the job market, it's not really dynamic right now. Economists are taking to calling it the low fire and low hire market…”
— Chris Farrell [07:45]

“I don't need to say this, do I? But being unemployed, being without a job, it takes a financial and mental toll.”
— Chris Farrell [08:20]

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Memorable Moments & Quotes

• A new wave in obesity treatment: The shift from expensive injectables to more accessible pills signals hope for millions priced out of GLP-1 weight-loss drugs.
  [01:20–01:50]
• Consumer fatigue: The persistent stress from high costs and uncertainty over jobs paints a picture of lingering “economic fatigue.”
  [02:42–03:38]
• Insight into the labor market: The “low fire and low hire” label for the current job market succinctly captures the lethargy among both employers and workers.
  [07:45]

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Noteworthy Timestamps

• 00:50 – Introduction of the main story: oral Wegovy approval
• 01:20 – Details on pricing, access, and insurance impacts for new weight-loss pill
• 02:17 – Consumer confidence preview and context
• 02:42 – Deep dive into consumer sentiment and economic pressures
• 05:37 – Examination of surprising rise in long-term unemployment
• 06:18 – Chris Farrell on why online applications slow the hiring process
• 07:45 – Discussion of the “low fire and low hire” labor market

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Conclusion

This episode captures the shifting landscape of American healthcare and labor, spotlighting both innovation and persistent anxiety among consumers and job seekers as the year comes to a close. With new, more affordable weight-loss pills on the horizon, insurance premiums and accessibility are front-of-mind, while long-term unemployment challenges and muted consumer confidence warn of lingering volatility even amid overall economic growth.

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Transcript

[Chris Farrell]

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[Sabri Benishour]

Weight Loss Drugs From Marketplace, I'm Sabri Benishour in for David Brancaccio. GLP1 weight loss drug injections have slimmed many waistlines and wallets. They are not cheap. A much less expensive alternative has now been approved by US Regulators. Novo Nordisk has gotten the green light for an oral version of Wegovy. Pills are cheaper to manufacture than injectables and that could be a game changer. Marketplace's Nova Sappho has more.

[Nova Safo]

The Food and Drug Administration's approval of a once a day pill form of Wegovy sets up the likelihood that it could be sold for far less than the once a week injectable form, which has a list price of much as $1,000 a month. Manufacturer Novo Nordisk says the pills will be as little as $150 a month for a starter dose, though patients have to increase their dose later and higher doses could cost more. The company is promising full pricing information in early January when the pills become available in the US the likelihood of a lower cost pill could help many people who currently can't access GLP1 medications because their insurance plans won't cover the expensive treatments. For weight loss alone. The drugs were intended to treat diabetes. Meanwhile, a health insurer funded study found that employer health plans that do cover the drugs saw premiums increase by as much as 14% because of the higher costs. I'm NovaSafo for Marketplace.

[Sabri Benishour]

So how's everyone feeling about the economy? Later this morning we will get an idea when the Conference Board's Consumer Confidence Index comes out. The analysts who track this stuff expect people to be feeling a little better after a big drop in mood in November. The government shutdown was a consumer buzzkill but as marketplaces Amy Scott reports, there is still plenty weighing on consumers as we head into a new year.

[Amy Scott]

Between the high cost of living and low expectations for the job market, consumers are feeling relatively unfavorable towards the economy. Joanne Hsu is director of the Surveys of Consumers at the University of Michigan, whose own Consumer Sentiment index improved slightly this month but is down more than 28% from this time last year. They're feeling strain on both sides of their budgets, they remain pretty frustrated by the persistence of high prices, and they're also worried about their incomes in the year ahead. And most people surveyed expect the job market to get worse. Aaron Charris, a partner at consulting firm Bain and Company, says that's likely to affect consumer spending.

[Marketplace Host]

We're sort of in an uncertain period for most people, and so what I suspect is, is that that will, particularly.

[Sabri Benishour]

For discretionary purchases, continue to be a.

[Marketplace Host]

Little bit of a limiter on growth.

[Amy Scott]

One thing that could lift the mood in the new year, he says, is the bigger tax refunds many should see from this year's Republican tax cuts, especially wealthier households. I'm Amy Scott for MarketPL.

[Marketplace Host]

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[Sabri Benishour]

When the economy is in recession, you get more people who are long term unemployed, unable to find a job for more than six months. When the economy is expanding, people do find jobs and long term unemployment comes down. At least that is how it normally works. This past year, something has been off. The economy has expanded, but we are getting more people who are long term unemployed, 1.9 million in November, an increase of 12% from a year before. Marketplace's senior economics contributor Chris Farrell is here to talk about it. Good morning, Chris.

[Chris Farrell]

Good morning.

[Sabri Benishour]

Do we know why the number of long term unemployed people is rising even though the economy has been growing?

[Chris Farrell]

So there are a couple of reasons. But let's take the, let's take the long term perspective. First, there are two economists from the Federal Reserve bank of Minneapolis. And in their recent they note that over the past seven decades it has taken longer for the unemployed to find jobs. And the explanation they favor relates to how people search for jobs. Specifically, the barriers to sending out a resume have fallen sharply with online applications. So give you one example. From the 1980s to the 2010s, the number of jobs the typical unemployed worker applied to each month, it's gone up for nearly three to seven. So it takes time, they say, for human resource departments to sift through all those online applications.

[Sabri Benishour]

Yeah, well, at a moment where AI is surging, does that make it worse or better?

[Chris Farrell]

My expectation is going to make it worse because it just makes it ever easier to send out multiple job applications and employers are likely to find themselves, you know, with more applicants for posted positions than ever. And the Minneapolis Fed economists, they highlight another impact which reflects another durable long term trend, wage inequality. So the well documented increase in wage inequality may encourage unemployed workers to pass on low wage opportunities in the hope of getting a better paying job, they say.

[Sabri Benishour]

Does this trend people out of work for longer? Tell us that the job market is actually even weaker than we thought?

[Chris Farrell]

I think so. You look the job market, it's not really dynamic right now. Economists are taking to calling it the low fire and low hire market with all the uncertainties weighing on business. I mean think tariffs. Companies are slow to hire and people are reluctant to quit their jobs. So odds are this lack of vigorous job churn, it's just going to make it that much harder for unemployed workers to land another one quickly. And the worry of course, is that employers, they look unfavorably at anyone who is unemployed for months on end, you know, for a variety of reasons. And I don't need to say this, do I? But being unemployed, being without a job, it takes a financial and mental toll.

[Sabri Benishour]

All right, Marketplace's senior economics contributor Chris Farrell in St. Paul, thank you. As always, thanks a lot. Our producers are Tamar Fagan, Ashley Rodriguez, Ariana Rosas and Erica Soderstrom. Our senior producer is Alex Schroeder. Our supervising senior producer is Meredith Garrettson Morby. And in New York, I'm Sabri Benishore with the Marketplace morning Report. From APM American Public Media.

[Marketplace Host]

As we head toward the end of the year, Marketplace is here to help you make sense of the economy, what's happening, why it matters and how it affects you. If this reporting has been valuable to you in 2025, consider becoming a Marketplace investor. Your support powers independent journalism that cuts through the noise and delivers clarity when it counts. Donate [e-mail] or click the link in the show notes.