The US economy is growing - so where are all the jobs?

February 13, 2026

The US labor market is experiencing an unusual phenomenon where economic growth continues at a robust 4. 4% annual pace, yet job creation has slowed dramatically to just 15,000 new positions monthly, with hiring rates at multi-year lows. Job seekers like former tech project manager Jacob Trigg are submitting thousands of applications without success, while the unemployment rate remains stable at 4.

Who is affected

Jacob Trigg, 42-year-old former tech project manager in Texas who has submitted over 2,000 job applications
James Richardson, 33-year-old from Pittsburgh, Pennsylvania, who lost his information security analyst position and has applied to over 1,200 jobs
Amy Beson, 47-year-old laid off from the University of Arizona in April
Workers in the tech industry facing limited hiring despite pandemic-era overstaffing
Government contractors and university employees affected by funding cuts
Newly unemployed government workers entering the job market
Job seekers across multiple sectors including tech, information security, and healthcare

What action is being taken

Job seekers like Trigg are applying to thousands of positions while taking temporary work in package delivery and landscaping to make ends meet
The Trump administration is implementing a crackdown on immigration
The Trump administration is making cuts to government spending and implementing tariff programs
Companies are maintaining operations with existing workforces rather than hiring new employees

Why it matters

This situation represents a rare and puzzling economic moment where strong GDP growth (4.4% annual pace) is decoupled from job creation, a pattern not seen in the last 25 years. The combination of continued economic expansion with severely limited hiring (just 15,000 jobs added monthly) raises fundamental questions about whether technological advances, particularly AI, are enabling companies to sustain productivity with fewer workers, potentially creating a permanent shift in the relationship between economic growth and employment opportunities. If this represents a structural change rather than a temporary disruption, it could signal a new era where traditional economic growth no longer translates into widespread job creation, with profound implications for workers' livelihoods and the broader social contract. The situation is generating widespread economic anxiety and challenging assumptions about how labor markets function in a technologically advanced economy.

What's next

Experts like Laura Ullrich from Indeed expect hiring to potentially improve if economic uncertainty decreases and the economy remains strong
Researchers will monitor whether stronger-than-expected job gains in January signal a positive trend for job seekers
The situation's trajectory depends on several variables including: potential stock market corrections affecting wealthy spending, the actual transformative impact of AI, immigration restrictions' effect on economic growth, and whether companies eventually discover they still need workers they thought could be replaced
According to economist Constantin Burgi, if jobs are truly lost to outsourcing or AI, the timeframe for any shift could range from a couple of months to a couple of years

Read full article from source: BBC