Recent "bad news" for the economy includes a cooling labor market with rising
unemployment and low job growth, stubbornly high inflation (especially for groceries and housing), and widespread affordability struggles for many middle-class Americans. These factors are contributing to record low consumer sentiment, even as some economic indicators (like GDP growth) appear strong overall.
Key points highlighting economic challenges include:

Cooling Labor Market: The U.S. labor market has shown significant signs of slowing. The unemployment rate rose to 4.6% in November 2025, a four-year high. The economy has also experienced the lowest average monthly job growth (excluding the pandemic) since the Great Recession, and layoffs have increased significantly.
Persistent Inflation and Affordability: While overall inflation data can be mixed, specific essential costs remain stubbornly high.
Grocery prices (especially for items like beef and coffee) have surged.
Housing affordability is a major concern due to high prices and mortgage rates.
One-third of the American middle class reportedly cannot afford basic necessities.
Low Consumer Sentiment: Despite strong stock market performance and GDP growth in some quarters, the average annual consumer sentiment index for 2025 was the lowest in history since data collection began in 1952. Many Americans are grappling with the feeling that life is unaffordable.
Global Risks and Trade Policy: Global leaders and experts in a recent World Economic Forum report ranked "geoeconomic confrontation" as the most pressing short-term global risk. Tariffs imposed by the current U.S. administration are a source of economic uncertainty, with economists suggesting they could slow economic growth and create headwinds for businesses.
Impact of AI: The rise of artificial intelligence (AI) is seen as a long-term risk, with some polls indicating that many businesses are looking to AI solutions to reduce headcount, affecting the job market, particularly for younger generations.