Recent research has found that tariffs can reduce economic activity to a point where inflation starts to fall. But if that happens, the economy would be dealing with much bigger problems.
Friday’s jobs report will almost certainly show a year-over-year decline in employment in the manufacturing sector, which lost more than 90,000 jobs in 2025.
In an uncertain economy, equipment purchases can be less risky than new hires. Capital expenditures can also help companies deal with a tightening labor supply.