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US Job Market Defies Expectations

Despite widespread predictions of an economic slowdown, the US job market proved resilient in 2024. Employers added 2.2 million jobs, with nonfarm payrolls growing by 1.4% for the year. On average, the US added 186,000 jobs per month—slower than 2023's 250,000 monthly average but still stronger than pre-pandemic levels.

Health care and social assistance led the way, making up over 40% of new job growth, followed by government positions at nearly 20%. These gains highlight ongoing strength in key sectors, even as some areas of the economy face headwinds.

Inflation Hits a 16-Year High

Inflation expectations among US consumers climbed to their highest level since 2008. A recent University of Michigan survey found that people expect prices to rise 3.3% annually over the next five to ten years, up from 3% just a month earlier.

Concerns over potential tariffs from the incoming Trump administration are playing a big role, with nearly a third of respondents mentioning tariffs—more than ever before. This inflation anxiety is driving people to make big purchases now, with 22% planning to buy big-ticket items before prices go up. That’s the highest level of "buy now" sentiment since 1990.

At the same time, optimism about income is fading, and half of respondents expect unemployment to rise in the coming year—signaling mixed feelings about the economy's future.

Europe’s Clean Energy Goals Face Challenges

Europe’s push for renewable energy is running into an unexpected obstacle: negative electricity prices. Germany saw 468 hours of negative power prices in 2024, up from 292 in 2023, while the UK jumped from 106 to 179 hours in the same period.

Negative prices happen when renewable energy floods the grid, often on sunny or windy days, and supply outpaces demand. This can lead to a bizarre situation where users are actually paid to consume energy. Unfortunately, outdated subsidies encourage renewable producers to keep generating even when prices dip below zero, making the problem worse.

Add in grid congestion and the lack of infrastructure to move energy where it’s needed, and you have a market that discourages new investments in renewables. These issues are making it harder for Europe to stay on track to meet its 2030 clean energy goals.

By breaking down these challenges—strong job growth paired with rising inflation and Europe’s energy struggles—we see a global economy walking a tightrope.

Sources:

• Bureau of Labor Statistics (BLS)

• The Wall Street Journal

• University of Michigan's Surveys of Consumers

• Reuters

What’s Happening at Carry?

Here’s what you can expect in the coming weeks

See the full list of events here. ⏰

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If you want more resources on building wealth as a solopreneur/entrepreneur, check these out:

• The Solo 401k handbook

• The Roth IRA handbook

• The Self-Directed IRA handbook

• The Guide to Paying Less in Taxes

• What is a Solo 401k?

• How to Open a Solo 401k