Employment among people in their 20s is declining at its fastest pace since the 1998 Asian financial crisis. The data points to a growing shift toward later entry into the workforce, raising fresh concerns about youth employment and labor-market trends.

Employment in the US financial industry is going through a prolonged downturn: The financial industry shed -14,000 jobs in July, to 9.09 million, the lowest since July 2022. This marks the 5th consecutive monthly decline, totaling -59,000. Since May 2025, financial industry payrolls have dropped -121,000, posting the largest drawdown since the 2020 pandemic. Excluding the pandemic, this is the biggest employment contraction in the sector since the 2008 Financial Crisis. The decline comes as financial firms accelerate AI adoption, aiming to boost productivity and reduce labor costs across the industry. AI is reshaping the future of employment in finance.

Employment in AI-linked sectors is contracting: Over the last 3 months, AI-affected sectors posted an average monthly decline of -11,000 jobs. This includes roles in management consulting, graphic design, office administration, telephone call centers, computer systems, software publishers, and web search. Since mid-2023, there have been only 2 months with a net increase in employment in these sectors. By comparison, at its 2022 peak, employment in these industries increased by as much as +55,000 jobs per month. Furthermore, employers cited AI as the reason for 38,579 job cuts in May, the highest monthly total on record, according to Challenger Gray data. This marks the 3rd consecutive monthly increase since ~5,000 in February. The impact of AI on the labor market is becoming increasingly visible.

Employment Friday delivered mixed signals. Non-farm payrolls beat expectations at 117k, but household employment fell for the third straight month. Manufacturing is picking up. Services are lagging. Historically, one follows the other. The US budget deficit is shrinking despite massive tax refunds flowing to corporations and individuals. That tells you the economy is probably stronger than the headlines suggest. Truflation has core Consumer Price Index (CPI) excluding food and energy at 1%. Producer prices are running above consumer prices, which usually happens when consumers push back on price increases. We think inflation will surprise to the downside over the next 6 to 9 months. Oil is the wildcard, but supply is growing fast. Capital spending has broken out of a 30-year range. AI is pulling old-guard names like Cisco, Corning, and Akamai back into growth. The manufacturing buildout is real and broadening. The innovation equity space has been frustrating this year. We've been selectively adding to innovation positions. We think the selloff in innovation stocks will clear as the economy turns. From where we sit, the economy is healthier than the headlines suggest, inflation is lower than people fear, and the innovation cycle is accelerating. Watch “In The Know” for Cathie Wood’s full economic breakdown.

Australia Employment Change Aug: 39.5K (est 20.0K; prev -15.8K) - Unemployment Rate: 4.6% (est 4.5%; prev 4.5%) - Full-Time Employment Change: -6.3K (prev 16.3K) - Part-Time Employment Change: 45.8K (prev -32.2K) - Participation Rate: 67.1% (est 66.9%; prev 66.9%)