NEC's Hassett Warns of Weaker Jobs Report

• The US labor market is in an 'extremely weakened condition,' with a projected 60K gain in private payrolls and unemployment rising to 4.5%.
• The private sector has shed almost 150,000 jobs (excluding healthcare), indicating a demand-side phenomenon with reluctance from firms to hire.
• Annual revisions to job counts are expected, with the BLS potentially overstating job growth by 60,000 jobs per month, making careful analysis of future reports crucial.

The discussion centers on the upcoming January jobs report, with expectations for a significantly weakened US labor market. Projections include a 60K gain in private payrolls and an unemployment rate ticking up to 4.5%, with a longer-term forecast of 4.8% by mid-year. While there's an acknowledgment of short-term pain due to reduced hiring and weak demand, the long-term outlook for the US economy remains positive.