Bank of America Warns: US Economy May Lose 175,000 Jobs Per Month

A concerning forecast from Bank of America suggests the US economy is facing potential headwinds. According to their analysis, nonfarm payroll gains are expected to weaken considerably, potentially leading to significant job losses.

Bank of America, however, expects nonfarm payroll gains to turn negative this year. This stark prediction highlights growing anxieties about the economic outlook.

The most alarming part of the Bank of America forecast? During the first quarter of 2025, the bank projects that the U.S. will be losing roughly 175,000 jobs a month. This significant downturn could have widespread implications for individuals and businesses across the nation.

“The premise is a harder landing [rather] than Bank of America, however, expects nonfarm payroll gains to be cut in half in Q4 of 2025 and turn negative in 2025. During the first quarter of 2025, the bank projects that." While other forecasts might paint a less bleak picture, Bank of America\'s assessment is raising eyebrows in financial circles.

The anticipated job losses are not expected to be limited to a single sector. With payrolls shrinking, thousands of jobs may be cut each month next year, and it can start as soon as the end of this year. The potential impact could be felt across various industries, impacting both white-collar and blue-collar workers.

This forecast serves as a critical reminder of the uncertainties facing the US economy. Monitoring key economic indicators and understanding the potential implications of forecasts like this is crucial for businesses and individuals alike.