The U.S. job market is already slowing, and economists warn the conflict involving Iran could make conditions worse by increasing uncertainty and dampening hiring, according to data cited by CNBC.
Economist Nicholas Bloom of Stanford University said the labor market is effectively “frozen,” with low hiring, low layoffs, and fewer workers willing to switch jobs. Data from the Bureau of Labor Statistics show hiring rates near their lowest levels since 2013, outside the pandemic period.
Iran war may further 'chill' an already frozen job market, economist says https://t.co/syu4PZ2ltl
— CNBC (@CNBC) March 25, 2026
Employers are hesitant to expand payrolls due to uncertainty around energy prices, global conflict, and shifting economic conditions. Rising costs linked to tariffs under President Donald Trump and elevated interest rates have also added pressure.
Workers are staying put, reflecting reduced confidence in finding new jobs. Economists say businesses are avoiding hiring mistakes during uncertain times, while still holding onto existing staff after labor shortages during the pandemic years.
Experts warn that prolonged instability could further limit job opportunities and mobility.
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TIPP Staff
