WSJ What’s News

Episode: Why More U.S. Companies Are Pulling Back on Hiring

Date: August 21, 2025
Host: Sabrina Siddiqui

Overview

This episode explores the growing trend of U.S. companies slowing or pausing hiring, investigating economic uncertainty, corporate caution, and the implications for the labor market in the second half of 2025. Additional headlines include a major court ruling impacting former President Trump, U.S. home sales data, and key movements in financial markets.

Key Discussion Points & Insights

1. Court Overturns Trump $500 Million Penalty

(00:31–03:53)

• Sharply Divided Appeals Court Decision

  • An appeals court overturned a $500 million civil fraud judgment against former President Trump, providing temporary relief but leaving some business restrictions intact.
  • The ruling was complex and divided, with "more than 300 pages of the justices writing about the things they disagreed about." (Corinne Ramey, 01:42)
  • Letitia James, New York Attorney General, retained authority to bring the fraud case and some restrictions remain for Trump’s business operations.

• Political & Legal Reactions

  • Both Trump and James claimed partial victories:

    • Trump praised the "courage" of the ruling.
    • James emphasized the business restrictions and plans to appeal to the state's highest court.

  • “In the short term? It’s certainly good for Trump… in the long term, it remains to be seen.”
    — Corinne Ramey (03:34)

Memorable Quote:

"This was about as far from agreement as I've ever seen."
— Corinne Ramey, 01:42

2. Surprise Rise in U.S. Home Sales

(04:02–06:41)

• Unexpected Uptick

  • Existing home sales rose 2% in July 2025, contrary to economists’ expectations of a drop.
  • Drivers include slightly lower mortgage rates and increased activity from investors and vacation home buyers.

• Ongoing Market Headwinds

  • “Home buying has been held back by really high prices for houses. Number one, we hit a record in price in June.”
    — Will Parker (05:10)
  • Prices remain historically high, with home values having risen "50% in some parts of the country."
  • Despite some improvement with inventory, affordability remains low due to the price-to-income ratio.

• Outlook

  • Markets might see modest improvement, but a "tremendous" rebound is not expected soon.
  • “The ratio of the cost of a home to people's income is not improved; it's just gotten worse over the last decade or so."
    — Will Parker (06:14)
  • Improvement hinges on further declines in mortgage rates.

3. Markets & Economic Signals

(06:42–08:15)

• Stock Market Decline

  • Walmart's missed profit projections and warning on tariffs led to a market dip.
  • The Dow and Nasdaq each fell ~0.3%; S&P 500 marked its fifth consecutive day of decline, down 0.4%.

• Manufacturing & Inflation

  • U.S. manufacturing rebounded sharply, but price pressures are escalating.
  • Average selling prices rose at their fastest rate in three years, with tariffs cited as a key driver.

4. Why U.S. Companies Are Pulling Back on Hiring

(08:45–11:23)

• Fresh Labor Market Data

  • Jobless claims increased to 235,000; continuing claims reached a high at 1.97 million.
  • 1 in 5 employers plan to slow hiring — “nearly double the rate of companies that anticipated bringing on fewer people at this time last year.”
    — Sabrina Siddiqui (08:45)
  • This cautious approach is the second year of such sentiment; optimism last peaked in early 2023.

• Business Sentiment: Rising Caution

  • "Companies are being more cautious. They're saying there's a lot of economic uncertainty out there, such as stop and start tariffs, so they're really taking a pause..."
    — Ray Smith (10:03)
  • Firms are shrinking workforces and pitching it as a pivot to greater productivity.
  • High-profile examples:
    • Novo Nordisk paused non-critical hiring;
    • Meta slowed its AI hiring spree.

• Wait-and-See Mentality

  • “Right now we’re still in sort of this wait and see environment."
    — Ray Smith (11:00)
  • Companies are hesitating on major hiring or expansion moves until economic signals (especially around tariffs) are clearer.

Memorable Quote:

“They’re framing it as this is a way they can be more productive with fewer employees... rather than it looking like they're being cautious and scared.”
— Ray Smith, 10:24

5. Notable International and Political Updates

(11:27–12:31)

• Ukraine and Russia
  • President Trump suggested Ukraine needs to continue attacks on Russia to have any chance of victory. The White House framed this as an observation.
• Nord Stream Sabotage
  • An ex-Ukrainian military officer suspected of sabotaging the Nord Stream pipeline was arrested in Italy under a German warrant, in a development hailed as a major breakthrough.

Timestamps for Key Segments

• Trump Civil Fraud Ruling Discussion: 00:31–03:53
• U.S. Home Sales Upswing: 04:02–06:41
• Market Movements & Economic Indicators: 06:42–08:15
• Job Market and Slowed Hiring Trends: 08:45–11:23
• International & Political Headlines: 11:27–12:31

Notable Quotes

• “This was about as far from agreement as I've ever seen.” — Corinne Ramey (01:42)
• “Home prices have gone up 50% in some parts of the country over a span of five years or so.” — Will Parker (05:10)
• “Companies are being more cautious. They're saying there's a lot of economic uncertainty out there, such as stop and start tariffs...” — Ray Smith (10:03)
• “They're framing it as this is a way they can be more productive with fewer employees... rather than it looking like they're being cautious and scared.” — Ray Smith (10:24)
• “Right now we’re still in sort of this wait and see environment.” — Ray Smith (11:00)

Summary/Tone

The episode blends concise financial news coverage with in-depth reporting and expert analysis. The tone is factual and brisk, relaying direct expert commentary on the meaning behind the data and business decisions. Notably, the general attitude toward economic prospects is cautious, emphasizing uncertainty around tariffs, high expenses (in both hiring and housing), and mixed signals from legal and international developments.