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		<title>College students are changing course in search of ‘AI-proof’ majors. But no one knows what they are</title>
		<link>https://hsjchronicle.com/college-students-rethink-majors-ai-job-fears-future-workforce/</link>
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		<dc:creator><![CDATA[Associated Press]]></dc:creator>
		<pubDate>Wed, 29 Apr 2026 21:00:00 +0000</pubDate>
				<category><![CDATA[Education]]></category>
		<category><![CDATA[artificial intelligence]]></category>
		<category><![CDATA[careers]]></category>
		<category><![CDATA[college students]]></category>
		<category><![CDATA[Job market]]></category>
		<guid isPermaLink="false">https://hsjchronicle.com/?p=70999</guid>

					<description><![CDATA[<p>Two years ago, Josephine Timperman arrived at college with a plan. She declared a major in business analytics, figuring she’d learn niche skills that would stand out on a resume and&#160;help land a good job&#160;after college. But the&#160;rise of artificial intelligence&#160;has scrambled those calculations. The basic skills she was learning in things like statistical analysis [&#8230;]</p>
<p>The post <a href="https://hsjchronicle.com/college-students-rethink-majors-ai-job-fears-future-workforce/">College students are changing course in search of ‘AI-proof’ majors. But no one knows what they are</a> appeared first on <a href="https://hsjchronicle.com">The Hemet &amp; San Jacinto Chronicle</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<p class="wp-block-paragraph">Two years ago, Josephine Timperman arrived at college with a plan. She declared a major in business analytics, figuring she’d learn niche skills that would stand out on a resume and&nbsp;<a href="https://apnews.com/article/tips-finding-entry-level-job-college-51b391ae0d344f785203f730b9061035">help land a good job</a>&nbsp;after college.</p>



<p class="wp-block-paragraph">But the&nbsp;<a href="https://apnews.com/article/college-graduates-job-market-unemployment-c5e881d0a5c069de08085a47fa58f90f">rise of artificial intelligence</a>&nbsp;has scrambled those calculations. The basic skills she was learning in things like statistical analysis and coding can now easily be automated. “Everyone has a fear that entry-level jobs will be taken by AI,” said the 20-year-old at Miami University in Ohio.</p>



<p class="wp-block-paragraph">A few weeks ago, Timperman switched her major to marketing. Her new strategy is to use her undergraduate studies to build critical thinking and interpersonal skills — areas where humans still have an edge.</p>



<p class="wp-block-paragraph">“You don’t just want to be able to code. You want to be able to have a conversation, form relationships and be able to think critically, because at the end of the day, that’s the thing that AI can’t replace,” said Timperman, who is keeping analytics as a minor and plans to dive deeper into the subject for a one-year master’s program.</p>



<p class="wp-block-paragraph">Today’s college students say that picking a major that’s “AI-proof” feels like shooting at a moving target as they prepare for a job market that could be fundamentally different by the time they graduate.</p>



<p class="wp-block-paragraph">As a result, many are reconsidering their career paths. About 70% of college students see AI as a threat to their job prospects, according to a 2025 poll by the&nbsp;<a href="https://iop.harvard.edu/youth-poll/51st-edition-fall-2025" target="_blank" rel="noreferrer noopener">Institute of Politics</a>&nbsp;at the Harvard Kennedy School, while recent&nbsp;<a href="https://apnews.com/article/ai-workplace-poll-gallup-gemini-chatgpt-e4c129e9773255203ccae208bfccb367">Gallup polling finds</a>&nbsp;U.S. workers are increasingly concerned about being replaced by new technologies.</p>



<h2 class="wp-block-heading" id="h-students-seeking-majors-that-teach-human-skills">Students seeking majors that teach ‘human’ skills</h2>



<p class="wp-block-paragraph">The uncertainty appears most concentrated among those pursuing degrees in technology and vocational areas of study, where students feel a need to develop expertise in AI but also fear being replaced by it. A&nbsp;<a href="https://poll.qu.edu/poll-release?releaseid=3958" target="_blank" rel="noreferrer noopener">recent Quinnipiac poll</a>&nbsp;found the vast majority of Americans believe it’s “very” or “somewhat” important for college and university students to be taught how to use AI, as Gallup Workforce polling finds AI is getting&nbsp;<a href="https://apnews.com/article/ai-workplace-gemini-chatgpt-poll-4934bc61d039508db32bc49f85d63d99">adopted in technology-related fields</a>&nbsp;at higher rates. Meanwhile, students studying healthcare and natural sciences may be less impacted by AI overhauls, Gallup found.</p>



<p class="wp-block-paragraph">“We see students all the time change majors. That’s not new or different. But it’s usually for a ton of different reasons,” said Courtney Brown, a vice president at Lumina, an education nonprofit focused on increasing the number of students who seek education beyond high school. “The fact that so many students say it’s because of AI — that is startling.”</p>



<p class="wp-block-paragraph">A&nbsp;<a href="https://news.gallup.com/poll/708224/gen-adoption-steady-skepticism-climbs.aspx" target="_blank" rel="noreferrer noopener">recent Gallup poll of Generation Z</a>&nbsp;youth and adults, between the ages of 14 and 29, found increasing skepticism and concerns about AI. Although half of Gen Z adults use AI at least “weekly,” and teenagers report higher use, many in this generation see drawbacks to the technology and worry about AI’s impact on their cognitive abilities and job prospects. About half — 48% — of Gen Z workers say the risks of AI in the workforce outweigh the possible benefits.</p>



<p class="wp-block-paragraph">Part of the challenge for college students is that the experts they would typically turn to for advice, like advisers, professors and parents, don’t have any answers. “Students are having to navigate this on their own, without a GPS,” says Brown.</p>



<p class="wp-block-paragraph">That uncertainty was evident last month at Stanford University, where the leaders of several prominent universities gathered for a wide-ranging panel discussion on the future of higher education. Topics of concern included the AI revolution that is transforming&nbsp;<a href="https://apnews.com/article/college-oral-exam-ai-chatgpt-77954a19f5304bfc6e76dc92d4bef3ad">how students learn</a>&nbsp;and forcing educators to&nbsp;<a href="https://apnews.com/article/ai-chatgpt-teacher-chatbot-b1630bc549e9044d1e3bbcc060fb422c">rethink pedagogy</a>.</p>



<p class="wp-block-paragraph">“We need to think really hard about what students need to learn to be successful in the job market in 10, 20, 30 years,” said Brown University President Christina Paxson.</p>



<p class="wp-block-paragraph">“And none of us know. We don’t know the answer to that,” Paxson said. “I think it’s communication, it’s critical thought. The fundamentals of a liberal education are probably more important than learning how to code in Java right now.”</p>



<h2 class="wp-block-heading" id="h-anxiety-also-reaches-computer-science-majors">Anxiety also reaches computer science majors</h2>



<p class="wp-block-paragraph">Computer science major Ben Aybar, 22, graduated last spring from the University of Chicago and applied for about 50 jobs, mostly in software engineering, without getting a single interview. He pivoted to a master’s degree in computer science and meanwhile has found part-time work doing AI consulting for companies.</p>



<p class="wp-block-paragraph">“People who know how to use AI will be very valuable,” said Aybar, who sees new jobs emerging that require AI skills, particularly for people who can explain the complexities in layman’s terms. “Being able to talk to people and interact with people in a very human way I think is more valuable than ever.”</p>



<p class="wp-block-paragraph">At the University of Virginia, data science major Ava Lawless is wondering if her major is worthwhile but can’t get concrete answers. Some advisers feel that data scientists will be safe because they’re the ones building AI models, but she keeps seeing gloomy job reports that indicate the contrary.</p>



<p class="wp-block-paragraph">“It makes me feel a bit hopeless for the future,” Lawless said. “What if by the time I graduate there’s not even a job market for this anymore?”</p>



<p class="wp-block-paragraph">She is considering switching to studio art, which is her minor.</p>



<p class="wp-block-paragraph">“I’m at a point where I’m thinking if I can’t get a job being a data scientist, I might as well pursue art,” she said. “Because if I’m going to be unemployed, I might as well do something I love.”</p>
<p>The post <a href="https://hsjchronicle.com/college-students-rethink-majors-ai-job-fears-future-workforce/">College students are changing course in search of ‘AI-proof’ majors. But no one knows what they are</a> appeared first on <a href="https://hsjchronicle.com">The Hemet &amp; San Jacinto Chronicle</a>.</p>
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		<post-id xmlns="com-wordpress:feed-additions:1">70999</post-id>	</item>
		<item>
		<title>What’s the current economic outlook for the Inland Empire?</title>
		<link>https://hsjchronicle.com/inland-empire-economic-outlook-2026/</link>
					<comments>https://hsjchronicle.com/inland-empire-economic-outlook-2026/#respond</comments>
		
		<dc:creator><![CDATA[Contributed]]></dc:creator>
		<pubDate>Wed, 25 Mar 2026 01:00:00 +0000</pubDate>
				<category><![CDATA[Letters & Opinions]]></category>
		<category><![CDATA[economic forecast]]></category>
		<category><![CDATA[Inland Empire economy]]></category>
		<category><![CDATA[Job market]]></category>
		<category><![CDATA[Riverside County]]></category>
		<category><![CDATA[San Bernardino County]]></category>
		<guid isPermaLink="false">https://hsjchronicle.com/?p=70488</guid>

					<description><![CDATA[<p>By Manfred Keil and Robert Kleinhenz&#160;&#124;&#160;Inland Empire Economic Partnership The Inland Empire Economic Partnership released its economic analysis and forecast for&#160;2026 at its State of the Region&#160;event last month. We presented the national and state outlook previously. Now, we’ll focus on the current economic situation in the Inland Empire and the short-term and long-term outlook. [&#8230;]</p>
<p>The post <a href="https://hsjchronicle.com/inland-empire-economic-outlook-2026/">What’s the current economic outlook for the Inland Empire?</a> appeared first on <a href="https://hsjchronicle.com">The Hemet &amp; San Jacinto Chronicle</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<p class="wp-block-paragraph"><strong>By Manfred Keil and Robert Kleinhenz</strong>&nbsp;|&nbsp;<a href="http://ieep.com/" target="_blank" rel="noreferrer noopener"><em>Inland Empire Economic Partnership</em></a></p>



<p class="wp-block-paragraph">The Inland Empire Economic Partnership released its economic analysis and forecast for&nbsp;<a href="https://www.dailybulletin.com/2026/02/18/inland-empire-challenge-diversify-jobs-from-all-eggs-in-one-basket/" target="_blank" rel="noreferrer noopener">2026 at its State of the Region</a>&nbsp;event last month. We presented the national and state outlook previously. Now, we’ll focus on the current economic situation in the Inland Empire and the short-term and long-term outlook. A subsequent piece will look at the housing market.</p>



<p class="wp-block-paragraph">2025 was not an easy year for the Inland Empire economy. The Riverside-San Bernardino-Ontario Metropolitan Statistical Area, known as the Inland Empire (Riverside County and San Bernardino County), made it through the year primarily on the strength of a few industries. Looking at the region’s economic activity, we think of it as a house with a good view that is supported by three stilts. These are logistics, health industries, and local government expenditures, primarily public education. Take away one of the pillars, and the house will tumble. Over the last year, two of these three industries prevented the area from experiencing a significant number of job losses.</p>



<p class="wp-block-paragraph">In 2025, there were only 3,200 job gains for the two counties, a 0.2% growth in employment. The two largest employment sectors — health and local government — created 24,400 new jobs, meaning all other sectors combined lost 21,100 jobs.</p>



<p class="wp-block-paragraph">The logistics sector, the third largest employer in the region and the largest in San Bernardino County, lost 6,100 positions, continuing the “freight recession,” which started in mid-2022. Other sectors losing jobs were manufacturing (-3,500), construction (-8,200), professional and business services (200), financial services (-1,200) and information (-500).</p>



<p class="wp-block-paragraph">The unemployment rate increased slightly from 4.9% to 5.1% during the year. However, this was due to the labor force growth outpacing the employment growth, which is a relatively healthy picture.</p>



<p class="wp-block-paragraph">The unemployment rate ended up at the same level as the state unemployment rate, which currently is the highest among the 50 states. Both the Inland Empire and the California unemployment rates are a percentage point higher than the national rate.</p>



<p class="wp-block-paragraph">Looking through 2026, job growth will be weak and will be adversely affected by national policies. Tariffs will have a lingering effect on logistics and cutbacks in Medicaid (MediCal) will temper growth in the health sector. Meanwhile, public education will face challenges in terms of funding cuts and demographics, with the number of school-age children continuing to decline. Most likely we will see a flat or shrinking labor force in the area.</p>



<p class="wp-block-paragraph">In short, the Inland Empire economy may find itself treading water for most of the year. There are threats to the logistics industry due to the recent price increases at the pump. However, we assume the Middle East conflict will not result in oil prices last reached in 2022, when they were over $130 per barrel.</p>



<p class="wp-block-paragraph">The long-term outlook for the Inland Empire must be viewed through the lens of today’s economy.</p>



<p class="wp-block-paragraph">With 4.7 million residents, the region is already the state’s second largest metro area and the 12th largest nationally. The region will grow in the coming years, faster than the coastal counties but at a slower pace than in the past. The foundation of the economy will continue to be logistics, health care and population-serving industries. Because the region’s housing is more affordable than along the coast, and because the coastal counties offer a wider array of jobs, large numbers of workers will choose to live in the region and commute. At recent count, approximately 350,000 commuters endure long commutes. This includes younger members of the workforce, who grew up in the region and attended local colleges, but found more and better employment opportunities elsewhere, since there are too few well-paying job opportunities within the region.</p>



<p class="wp-block-paragraph">The trajectory of the region can be altered by attracting and growing firms in industries that feature better paying jobs, including those for better-educated workers. These industries can lure workers back.<br><br>The challenge is to envision the future the Inland Empire wants and to undertake a strategic plan to realize that vision. The region can identify and attract growth-oriented industries that have the potential to move here and can work alongside the industries that currently support the regional economy. The region’s colleges and universities turn out thousands of graduates each year, but these numbers are not well reflected in the region’s educational attainment statistics: Only 25% of residents ages 25 to 45 hold at least a bachelor’s degree compared to 37% for the state and the nation. Higher paying firms are reluctant to move into the area. While the cost of living in the region is better than in coastal communities, firms that may consider relocating from elsewhere in the country will hesitate because housing costs in the region exceed those in other parts of the country with whom we must compete. The region must take steps to rein in housing costs if it wants to attract firms from outside the state. This means increasing the supply of housing beyond recent levels of new construction, and meeting the housing needs of all households, including market rate housing, affordable housing, and rental housing.</p>



<p class="wp-block-paragraph"><em>The&nbsp;<a href="http://ieep.com/" target="_blank" rel="noreferrer noopener">Inland Empire Economic Partnership</a>’s mission is to help create a regional voice for business and quality of life in Riverside and San Bernardino counties. Its membership includes organizations in the private and public sector.</em></p>
<p>The post <a href="https://hsjchronicle.com/inland-empire-economic-outlook-2026/">What’s the current economic outlook for the Inland Empire?</a> appeared first on <a href="https://hsjchronicle.com">The Hemet &amp; San Jacinto Chronicle</a>.</p>
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		<post-id xmlns="com-wordpress:feed-additions:1">70488</post-id>	</item>
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		<title>Report: Riverside County&#8217;s Jobless Rate Drops Below 6 Percent</title>
		<link>https://hsjchronicle.com/report-riverside-countys-jobless-rate-drops-below-6-percent/</link>
					<comments>https://hsjchronicle.com/report-riverside-countys-jobless-rate-drops-below-6-percent/#respond</comments>
		
		<dc:creator><![CDATA[City News Service]]></dc:creator>
		<pubDate>Sun, 27 Oct 2024 02:12:00 +0000</pubDate>
				<category><![CDATA[News Briefs]]></category>
		<category><![CDATA[economic growth]]></category>
		<category><![CDATA[education sector]]></category>
		<category><![CDATA[employment trends]]></category>
		<category><![CDATA[Inland Empire]]></category>
		<category><![CDATA[job loss]]></category>
		<category><![CDATA[Job market]]></category>
		<category><![CDATA[payroll gains]]></category>
		<category><![CDATA[regional economy]]></category>
		<category><![CDATA[Riverside County]]></category>
		<category><![CDATA[Unemployment]]></category>
		<guid isPermaLink="false">https://hsjchronicle.com/?p=64561</guid>

					<description><![CDATA[<p>RIVERSIDE, CA — Payroll gains in the regional economy more than offset losses, bringing Riverside County&#8217;s unemployment down last month, according to figures released Friday by the California Employment Development Department. The countywide jobless rate in September, based on preliminary EDD estimates, was 5.6%, compared to 6.2% in August. According to data, the September rate [&#8230;]</p>
<p>The post <a href="https://hsjchronicle.com/report-riverside-countys-jobless-rate-drops-below-6-percent/">Report: Riverside County&#8217;s Jobless Rate Drops Below 6 Percent</a> appeared first on <a href="https://hsjchronicle.com">The Hemet &amp; San Jacinto Chronicle</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<p class="wp-block-paragraph">RIVERSIDE, CA — Payroll gains in the regional economy more than offset losses, bringing Riverside County&#8217;s unemployment down last month, according to figures released Friday by the California Employment Development Department.</p>



<p class="wp-block-paragraph">The countywide jobless rate in September, based on preliminary EDD estimates, was 5.6%, compared to 6.2% in August.</p>



<p class="wp-block-paragraph">According to data, the September rate was nearly a half-percentage point above the year-ago level, when countywide unemployment stood at 5.2%.</p>



<p class="wp-block-paragraph">Mecca had the highest unemployment rate countywide in September at 13.4%, followed by Coachella at 13.1%, Cherry Valley at 10%, Desert Hot Springs at 8.1% and Rancho Mirage at 7.9%.</p>



<p class="wp-block-paragraph">The combined unemployment rate for Riverside and San Bernardino counties &#8212; the Inland Empire &#8212; in September was 5.4%, down from 6% in August, the EDD said.</p>



<p class="wp-block-paragraph">Bi-county data indicated payrolls expanded by the widest margin in the public sector, which added 9,100 positions, mostly in the education sector, as more teachers, administrators and support staff returned from summer hiatus.</p>



<p class="wp-block-paragraph">The agricultural, health services, information technology, professional business services, and trade and transportation sectors grew by an aggregate 6,300 positions.</p>



<p class="wp-block-paragraph">Payrolls shrank by the largest amount in the construction sector, which declined by 2,200 jobs last month. Meantime, the financial services, hospitality and manufacturing sectors collectively shed 2,300 jobs.</p>



<p class="wp-block-paragraph">Miscellaneous unclassified industries additionally contracted by an estimated 600 jobs, according to figures.</p>



<p class="wp-block-paragraph">Only the mining sector was unchanged in September.</p>



<p class="wp-block-paragraph">The statewide non-seasonally-adjusted unemployment rate last month was 5.3%.</p>
<p>The post <a href="https://hsjchronicle.com/report-riverside-countys-jobless-rate-drops-below-6-percent/">Report: Riverside County&#8217;s Jobless Rate Drops Below 6 Percent</a> appeared first on <a href="https://hsjchronicle.com">The Hemet &amp; San Jacinto Chronicle</a>.</p>
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		<post-id xmlns="com-wordpress:feed-additions:1">64561</post-id>	</item>
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		<title>US unemployment claims rise by 14,000 to 262,000</title>
		<link>https://hsjchronicle.com/us-unemployment-claims-rise-by-14000-to-262000/</link>
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		<dc:creator><![CDATA[Associated Press]]></dc:creator>
		<pubDate>Sat, 13 Aug 2022 01:00:00 +0000</pubDate>
				<category><![CDATA[Government]]></category>
		<category><![CDATA[Job market]]></category>
		<category><![CDATA[the Labor Department]]></category>
		<category><![CDATA[US unemployment]]></category>
		<guid isPermaLink="false">https://hsjchronicle.com/?p=49246</guid>

					<description><![CDATA[<p>The number of Americans who signed up for unemployment benefits rose last week to the highest level since November, though the U.S. job market continues to show signs of strength.</p>
<p>The post <a href="https://hsjchronicle.com/us-unemployment-claims-rise-by-14000-to-262000/">US unemployment claims rise by 14,000 to 262,000</a> appeared first on <a href="https://hsjchronicle.com">The Hemet &amp; San Jacinto Chronicle</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<p class="wp-block-paragraph">By PAUL WISEMAN</p>



<p class="wp-block-paragraph">WASHINGTON (AP) — The number of Americans who signed up for unemployment benefits rose last week to the highest level since November, though the U.S. job market continues to show signs of strength.</p>



<p class="wp-block-paragraph">Applications for jobless aid climbed by 14,000 to 262,000 and now have risen five out of the last six weeks,<a href="https://www.dol.gov/agencies/vets/programs/tap/off-base-transition-training"> the Labor Department</a> reported Thursday.</p>



<p class="wp-block-paragraph">The four-week average for claims, which smooths out weekly ups and downs, rose by 4,500 to 252,000, also the highest since November.</p>



<p class="wp-block-paragraph">The number of Americans collecting traditional unemployment benefits increased by 8,000 the week that ended July 30 to 1.43 million, highest since early April.</p>



<p class="wp-block-paragraph">Unemployment applications are a proxy for layoffs and are often seen as an early indicator of where the job market is headed.</p>



<p class="wp-block-paragraph">So far this year, hiring in the United States has been remarkably strong and resilient in the face of rising interest rates and weak economic growth.</p>



<p class="wp-block-paragraph">The Labor Department reported last week that U.S. employers added 528,000 jobs last month, more than double what forecasters had expected. The unemployment rate dipped to 3.5% in July, tying a 50-year low reached just before coronavirus pandemic slammed the U.S. economy in early 2020.</p>



<p class="wp-block-paragraph">The United States recovered with unexpected strength from 2020′s COVID-19 recession, leaving businesses scrambling to find enough workers.</p>



<p class="wp-block-paragraph">But the U.S. economy faces challenges. Consumer prices have been surging, rising 8.5% in July from a year earlier — down slightly from June’s 40-year high 9.1%. To combat inflation, the Federal Reserve has raised its benchmark short-term interest rate four times this year.</p>



<p class="wp-block-paragraph">Higher borrowing costs have taken a toll. The economy contracted in the first half of the year — one rule of thumb for the onset of a recession. But the strength of the job market is inconsistent with an economic downturn.</p>



<p class="wp-block-paragraph">“Demand for labor remains quite strong,″ economists Thomas Simons and Aneta Markowska of Jefferies wrote Thursday. “The modest pickup in claims suggests that turnover may be increasing in weaker firms that are struggling with slowing growth.″</p>



<p class="wp-block-paragraph">Find your latest news here at the <a href="https://hsjchronicle.com/">Hemet &amp; San Jacinto Chronicle </a></p>
<p>The post <a href="https://hsjchronicle.com/us-unemployment-claims-rise-by-14000-to-262000/">US unemployment claims rise by 14,000 to 262,000</a> appeared first on <a href="https://hsjchronicle.com">The Hemet &amp; San Jacinto Chronicle</a>.</p>
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		<title>Biden bets strong job market will shield economy from slump</title>
		<link>https://hsjchronicle.com/biden-bets-strong-job-market-will-shield-economy-from-slump/</link>
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		<dc:creator><![CDATA[Associated Press]]></dc:creator>
		<pubDate>Sat, 09 Apr 2022 01:00:00 +0000</pubDate>
				<category><![CDATA[Government]]></category>
		<category><![CDATA[economy]]></category>
		<category><![CDATA[Job market]]></category>
		<category><![CDATA[President Joe Biden]]></category>
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					<description><![CDATA[<p>The U.S. economy faces plenty of threats: War in Ukraine, high grocery bills, spiking gasoline prices, splintered supply chains, the lingering pandemic and rising interest rates that slow growth.</p>
<p>The post <a href="https://hsjchronicle.com/biden-bets-strong-job-market-will-shield-economy-from-slump/">Biden bets strong job market will shield economy from slump</a> appeared first on <a href="https://hsjchronicle.com">The Hemet &amp; San Jacinto Chronicle</a>.</p>
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<p class="wp-block-paragraph">By JOSH BOAK</p>



<p class="wp-block-paragraph">WASHINGTON (AP) — The U.S. economy faces plenty of threats: War in Ukraine, high grocery bills, spiking gasoline prices, splintered supply chains, the lingering pandemic and rising interest rates that slow growth.</p>



<p class="wp-block-paragraph">The Biden <a href="https://www.whitehouse.gov/">White House</a> is betting the U.S. economy is strong enough to withstand these threats, but there are growing fears of a coming economic slump among voters and some Wall Street analysts.</p>



<p class="wp-block-paragraph">The next few months will test whether President Joe Biden built a durable recovery full of jobs with last year’s $1.9 trillion relief package, or an economy overfed by government aid that could tip into a downturn. On the line for <a href="https://democrats.org/">Democrats</a> ahead of the midterm elections is whether voters see firsthand in their lives that inflation can be tamed and the economy can manage to run hot without overheating.</p>



<p class="wp-block-paragraph">Brian Deese, director of the White House National Economic Council, told reporters this week that the 3.6% unemployment rate and last year’s robust growth puts the U.S. in a safe place compared to the rest of the world.</p>



<p class="wp-block-paragraph">“The core question is whether the strength of the US economy is now an asset or a liability,” Deese said. “What we have done over the course of the last 15 months is driven a uniquely strong economic recovery in the United States, which positions us uniquely well to deal with the challenges ahead.”</p>



<p class="wp-block-paragraph">But others see an economy that could struggle to preserve growth while reducing inflation now running at a 40-year high of 7.9%. The Federal Reserve has signaled a series of benchmark interest rate increases and other policies to slow inflation this year, yet Russia’s invasion of Ukraine has destabilized the global energy and food markets in ways that could push prices upward.</p>



<p class="wp-block-paragraph">Deutsche Bank on Tuesday became the first major financial institution to forecast a U.S. recession. And Harvard University economist Larry Summers — a Democrat and former treasury secretary — noted that the U.S. economy has gone into recession within two years each time inflation eclipsed 4% and unemployment was below 5% as they are now.</p>



<p class="wp-block-paragraph">Joe LaVorgna, who worked in the Trump White House and is now chief economist for the Americas at Natixis, said he expects economic growth this year to be just below 1%, a potentially dangerous level.</p>



<p class="wp-block-paragraph">While household balance sheets are solid and unemployment low, wages are not keeping up with inflation, which could dampen consumer spending. And supply chain disruptions and higher energy costs will be additional drags.</p>



<p class="wp-block-paragraph">“The reason why you have a recession when the economy is growing 1% is it’s like a weakened immune system,” LaVorgna said. “Any negative event, even a small one, is going to throw you off course and stall speed becomes a recession.”</p>



<p class="wp-block-paragraph">Still, because of the strong labor market and household savings, LaVorgna also anticipates that any downturn would be mild.</p>



<p class="wp-block-paragraph">So far, consumer spending has been healthy even if the public views the economy as anemic.</p>



<p class="wp-block-paragraph"><a class="" href="https://apnews.com/article/russia-ukraine-putin-biden-business-congress-dca6b1eba4979bcec8bef1a80c9f0098">Nearly 7 in 10 Americans</a>&nbsp;believe the economy is in poor shape, according to a poll last month by The Associated Press-NORC Center for Public Affairs Research. Yet Bank of America noted that total debit and credit card spending in March was&nbsp;<a href="https://business.bofa.com/content/dam/flagship/bank-of-america-institute/economic-insights/consumer-checkpoint-april-2022.pdf" target="_blank" rel="noreferrer noopener" class="">up 11%</a>&nbsp;from a year ago, and its analysts concluded households are “strong enough to weather the storm provided it doesn’t persist too long.”</p>



<p class="wp-block-paragraph">There are also signs that consumers are adjusting as higher oil prices have led average gasoline costs to hit $4.15 a gallon, according to AAA. Gas costs have fallen in the past week, but they’re still up 45% from a year ago.</p>



<p class="wp-block-paragraph">One consequence of higher prices is that Americans began to use less oil and gas. The U.S. consumed a daily average of 21.9 million barrels during the first full week of February; the figure fell 9% to 19.9 million barrels during the first week of April, according to the Energy Information Administration. That decline is larger than the normal seasonal drop-off in 2019, the last full year before the pandemic. Gasoline usage has dropped more than 6% during the same period.</p>



<p class="wp-block-paragraph">A recent Goldman Sachs research note stood out to Biden administration officials because it suggested that job growth and pay increases would cushion the economy from higher commodity prices. Because of the strong labor market, the economy is better protected from commodity shocks than in the recessions of 1974, 1980 and 1990, as well as the 2008 financial crisis.</p>



<p class="wp-block-paragraph">The White House has watched with some frustration as the public conversation about the economy has been reduced to inflation, believing that largely ignores the strength of the labor market and the idea that families are able to manage the higher prices because of the coronavirus relief provided earlier.</p>



<p class="wp-block-paragraph">The administration believes that Fed rate increases as well as a drop in deficit spending this year will help to lower inflation. But the key message that the White House wants to deliver in response to public fears about the economy is that Biden understands their concerns.</p>



<p class="wp-block-paragraph">The challenge, however, is that many Americans are so focused on inflation that they believe the job market — and wider economy — is weaker than it actually is. That means the White House has to make a nuanced case in which it recognizes the economic weaknesses but repeats the low unemployment rate again, again and again so that it lodges in the public mind.</p>



<p class="wp-block-paragraph">The doubts about the economy — despite the solid jobs numbers — are “a signal that we need to continue to make that case clearly and unambiguously,” said Deese.</p>



<p class="wp-block-paragraph">Find your latest news here at the <a href="https://hsjchronicle.com/">Hemet &amp; San Jacinto Chronicle </a></p>
<p>The post <a href="https://hsjchronicle.com/biden-bets-strong-job-market-will-shield-economy-from-slump/">Biden bets strong job market will shield economy from slump</a> appeared first on <a href="https://hsjchronicle.com">The Hemet &amp; San Jacinto Chronicle</a>.</p>
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