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Marketplace

Labor market anxieties grow

07 Jan 2026

Transcription

Chapter 1: What are the current job market trends affecting workers?

2.107 - 32.457 Kai Rizdahl

Tariffs are back on the program today after a short time away. We'll do jobs as well. And one more visit to Altadena. From American Public Media, this is Marketplace. In Los Angeles, I'm Kyle Rizdahl. It is Wednesday today. This one is the 7th of January. Good as always to have you along, everybody.

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33.238 - 57.552 Kai Rizdahl

Hey, don't look now, but come Friday, we're going to get the December jobs report on time, which is nice. Today, we got some hints as to what it might look like. The payroll processing company ADP said private sector companies added jobs last month, 41,000 of them. Not a ton in an economy the size of this one, but... We'll take it. Also, jolts came out today.

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57.632 - 79.696 Kai Rizdahl

That is, of course, the job openings and labor turnover survey, which show job openings fell to a more than one year low in November, but layoffs fell as well. It's more of that low fire, low hire labor market we keep hearing about. There is, though, something else that's important as well, and it cannot be ignored. How worried people might be about holding on to their jobs and their income.

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80.337 - 82.519 Kai Rizdahl

Marketplace's Mitchell Hartman starts us off with that one.

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83.073 - 105.294 Mitchell Hartman

All through the latter part of 2025, the job market was losing steam, says Bill Adams at Comerica Bank. Job growth hit an air pocket and has really been in low gear since April of this past year. And he says the working public has noticed. People are more worried about job security. They're less upbeat about the prospects of being able to find a new job.

105.455 - 115.55 Mitchell Hartman

And that is weighing on how they're thinking about their own personal finances. This is evident in the University of Michigan's consumer surveys, says director Joanne Hsu.

115.61 - 126.726 Joanne Hsu

One of the big overarching patterns of 2025 was a broad deterioration in views and expectations for labor markets, a pretty substantial increase in people expecting unemployment to get worse in the future.

127.207 - 132.975 Mitchell Hartman

People are worried about their own incomes falling or jobs getting eliminated, or they may know someone.

133.208 - 143.05 Joanne Hsu

Even if the consumer themselves is stable in their job, they talk about how hard the labor market is for a young person in their family trying to look for a job right now.

Chapter 2: How are job seekers feeling about their job security?

430.992 - 432.456 Kai Rizdahl

Are they ever going to equalize?

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433.769 - 454.975 Gita Gopinath

Well, what we've seen recently actually is the Trump administration cutting back some of the tariffs, right, on food like beef and coffee and so on, because it is actually affecting people's cost of living. Again, a lot depends on what happens after the Supreme Court decision and how they decide to react to that.

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455.455 - 461.042 Gita Gopinath

But what we're seeing in terms of this gap seems like something that could be quite resilient, right?

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461.36 - 481.547 Kai Rizdahl

Yeah. And that case in the Supreme Court, maybe, maybe, maybe coming on Friday. We don't know. They said they're going to have a decision on something. You obviously been doing this for a long time, general macroeconomic stuff. And you went into this with a bunch of, you know, presuppositions and expectations. Did did did your expectation did your results match your expectations?

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481.607 - 482.929 Kai Rizdahl

Was there anything that surprised you?

484.175 - 507.645 Gita Gopinath

I think the first question we had was, what exactly is the tariff rate of the US? Usually in the past, this is a fairly uninteresting question because there's very few changes in tariff rates and it's easy to just download from any site. But this past year has been crazy in terms of the number of announcements and scrapping and then exemptions and so on.

508.226 - 527.435 Gita Gopinath

So a bit of the exercise was literally just to figure out, and we had to do that somewhat creatively, to figure out what exactly is the tariff rate that U.S. importers are paying. And though the average tariff rate, which is, you know, once you take into account what people are actually paying is 14%. I don't want to downplay the size.

527.455 - 541.84 Gita Gopinath

14% is a hell of a lot higher than the 3% that it was before all these tariffs were imposed. And that has had an important effect on US producers and also on US consumers.

542.984 - 561.285 Kai Rizdahl

This next question, which I promise will be the last one, is it ventures into the political. But, you know, you've been around a long time. You can probably answer it. What do you expect going forward with tariffs? Do you anticipate and the caveat here, of course, is that President Trump could wake up tomorrow and throw a whole new raft of these things on.

Chapter 3: What insights do economists provide about the job market outlook?

578.791 - 596.368 Gita Gopinath

And I think there's another 50% in the pipeline. And that's usually how it works, right? It doesn't happen overnight. It takes a couple of years for the full effect to go through. And then after that, I don't think that is going to keep going up unless we have, you know, crazy policies at the Federal Reserve, which I'm hoping is not the case.

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597.229 - 605.323 Gita Gopinath

So this will still be one time, but it will take another round of price increases in 2026. I think we're halfway there.

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606.265 - 610.758 Kai Rizdahl

Halfway there. All right. Geeta Gobindath is a professor of economics at Harvard University.

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Chapter 4: What are the implications of Nvidia's new AI chips?

610.778 - 620.406 Kai Rizdahl

Her paper with her colleague at the University of Chicago is all about how much we're actually paying versus what the statutory rent on tariffs is. Dr. Gobindath, thanks for your time. I really do appreciate it.

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620.426 - 620.747 Gita Gopinath

Thanks, Guy.

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645.668 - 652.595 Kai Rizdahl

I want you to turn around and tell me what you see right here on the corner of Mariposa and Lake, on this lot.

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653.576 - 671.693 Mitchell Hartman

Okay, what do I see on this lot? I've been visualizing this lot for a lot of time, a long time, more than one year, years now, since I've been in this location. But what I see right now is a blank slate with sky is the limit.

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672.837 - 687.88 Kai Rizdahl

Chalene Hearing lost her martial arts studio in the Eaton Fire a year ago today. We first met her back in March in front of what used to be the Two Dragons Martial Arts Studio on the corner of Mariposa and Lake Avenues in Altadena.

688.961 - 713.53 Mitchell Hartman

First, I was hurting and sad and could not believe that 30 years was gone. And then I became very... by the outpouring of people that called me and told me they were crying with me as we watched that building burn on TV.

714.531 - 732.19 Kai Rizdahl

We're standing in that exact same spot now, across the street from Joey Galloway's two buildings and Jimmy Orlandini's hardware store. Instead of scattered debris and melted steel beams, though, we're looking at what, to me, is just a smooth, dirt-covered lot. Chalene, though, sees possibility.

732.743 - 750.794 Mitchell Hartman

Down below, there's commercial businesses. And up above, there's residential spaces, apartments. Lots of windows, lots of light. Because we have a view of the mountains.

Chapter 5: How did car sales perform in 2025 despite economic challenges?

750.994 - 753.418 Mitchell Hartman

And all the way down to downtown L.A.

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754.057 - 774.104 Kai Rizdahl

She started Two Dragons with her late husband more than 30 years ago. She teaches classes now with her son. It's another of Altadena's multi-generational family businesses. Before the fire, she rented space in her building. Now she wants to own it. How are you going to make that happen? You have to raise a whole ton of money to make that happen.

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774.124 - 776.587 Mitchell Hartman

Absolutely. You know it costs money.

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Chapter 6: What factors are influencing consumer sentiment in the current economy?

776.627 - 777.368 Mitchell Hartman

Everything costs money.

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777.388 - 777.649 Kai Rizdahl

Right?

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777.709 - 780.9 Mitchell Hartman

Absolutely. Absolutely. But we will.

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781.401 - 795.78 Kai Rizdahl

So right now I'm working with Greenline. Greenline Housing Foundation is a nonprofit based in Los Angeles County that provides financial assistance and education to people of color. They've bought the lot and given Chalene the right of first refusal to buy it from them.

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796.621 - 808.077 Mitchell Hartman

We got the purchase of the lot done, and we are going to be coming together to work on the resources that we need to help build this thing out.

808.512 - 809.757 Kai Rizdahl

You're still teaching.

Chapter 7: What does the future hold for the job market and consumer spending?

809.777 - 811.885 Kai Rizdahl

You're still working. You're still doing your thing, though, right?

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812.267 - 815.62 Mitchell Hartman

Absolutely. Yes. Yes, I am.

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816.173 - 839.11 Kai Rizdahl

Altogether, Greenline spent around $500,000 to buy the lot. That's $500,000 that Chalene's eventually going to have to pay back. She's raised more than $100,000 of that through GoFundMe. And in the meanwhile, she's teaching about a dozen classes a week online and at a park in Altadena, which has basically become her temporary location until she can get back in her studio.

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840.203 - 850.641 Kai Rizdahl

When you think about what this place can be, what are you thinking about? Not just the building, but about what it's going to do.

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854.768 - 880.396 Mitchell Hartman

This is the start of what this whole community is going to do. It's not just me. The small businesses here, we're working together to set up some type of collaboration. With that vision I just talked about, everybody wants it. We're all wanting it. We all need it. We all have to survive. And we have to go for the change.

882.438 - 886.983 Kai Rizdahl

Was there ever a doubt in your mind that you were going to do this? That you were going to rebuild it and start all over again?

888.164 - 920.697 Mitchell Hartman

You know... Maybe? Okay, so... Like I said, I said before this fire happened that I was going to own this. I was trying to buy it from the previous owner. So they weren't ready to sell. With the fire, it needed to be sold, and they put it up for sale. And I thought, okay, it's time. I just jumped before I even thought about, oh, how much is this going to cost me? Yeah, well. But I just jumped.

920.737 - 932.622 Mitchell Hartman

I'm like, okay. We have the energy and the capacity as people. When you lose everything and you have nothing left, then you know what? You either get busy living or get busy dying.

933.123 - 939.352 Kai Rizdahl

And we should say you've had loss, right? I mean, not just this place, but you're out of your home and you're living in an apartment. Yes, yes, yes.

Chapter 8: How have tariffs impacted the economy recently?

947.427 - 956.836 Mitchell Hartman

You got a clean slate. It's empty. And either I sit down and cry about it or I say, what's next?

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958.698 - 973.232 Kai Rizdahl

What's next hasn't changed in the past year. Businesses in this town need to come back so that the people can come back. Businesses like Chalene's and Joey Galloway's and Jimmy Orlandini's. That is how Altadena is going to recover.

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973.415 - 986.817 Kai Rizdahl

Over on our morning show, David Boncaccio has been covering the residential recovery from the Eaton Fire, people on his block looking to rebuild like he is, but also people who want and need to remediate the toxic residue.

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987.674 - 997.61 David Boncaccio

We know what we have tested positive for, which includes, oh my gosh, I couldn't even tell you all the things, asbestos, lead, beryllium, cyanide.

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997.63 - 1003.9 Mitchell Hartman

Lead, asbestos, cadmium. Ellen's husband, Eric, is a senior engineer for NASA.

1004.221 - 1018.39 Kai Rizdahl

Chromium, manganese, lithium. I may be missing a heavy metal in there somewhere. That's tomorrow on the Marketplace Morning Report on the radio, online. or, of course, on the podcast platform of your choice.

1047.158 - 1050.911 Erin Keating

Coming up... We saw a lot of upheaval throughout the year.

1050.931 - 1075.692 Kai Rizdahl

You can say that again, pal. First, though, let's do the numbers. Dow Industrials down 466 today. That's nine-tenths percent, 48,996. The Nasdaq found 37 points in the couch cushions. That's about two-tenths percent, 23,584. The S&P 500 down 24 points, a third of one percent, 69 and 20 for the day.

1076.573 - 1093.672 Kai Rizdahl

Chevron is teaming up with the private equity firm Quantum Energy Partners to buy the international assets of the sanctioned Russian oil company Lukoil. The deal is valued at $22 billion. It includes gas production, refining facilities, and 2,000 gas stations across Europe. Chevron, which is, as of course you know by now, the only U.S.

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