AI could be causing 'quiet time' in labor market, top Trump economic aide Hassett says (www.cnbc.com)

Kevin Hassett, director of the National Economic Council, said on CNBC that artificial intelligence may be creating a "quiet time in the labor market" because AI is boosting worker productivity to the point that firms "don't necessarily have to hire the new kids out of college." He framed any hiring softness as likely temporary, arguing strong GDP and output growth will generate new demand and opportunities. Hassett’s remarks are notable because the Trump administration has generally promoted AI development; other senior figures, like David Sacks, have signaled there will be "no federal bailout for AI," underscoring limited appetite for direct industry rescues. For the AI/ML community, Hassett’s comments signal rising policy and labor attention to productivity gains and their effects on entry-level hiring, workforce composition and reskilling needs. Technically, the takeaway is that model-driven efficiency can reduce marginal labor demand even as aggregate output rises, leading to sectoral hiring shifts and increased demand for upskilling rather than universal job destruction. The broader context—administration messaging on affordability and Hassett’s side note that grocery prices haven’t fallen despite claims—suggests policymakers will balance pro‑AI growth policies with political pressure on living-cost and labor outcomes rather than pursue subsidized support for AI firms.