US Economy Grows 2.2% in 2025 Amid 'Jobless Expansion' Fueled by AI Investment

The US economy expanded 2.2% in 2025, down from 2.8% in 2024, despite negligible payroll growth of just 181,000 positions. This divergence, termed a "jobless expansion," stems from surging corporate investment in artificial intelligence and tighter immigration policies. AI spending contributed 0.4 percentage points to 2025 GDP, while net immigration is projected to drop to 160,000 in 2026. The unemployment rate stands at 4.3%, with consumer spending supported by stock market wealth gains rather than widespread wage growth.