Fed Governor Waller says there are reasons including AI to think the hiring may remain weak, it is difficult to interpret recent jobless claims data

• Firms are starting to shed labour after over-hiring.
• CEOs says significant job cuts are coming from AI.
• Weak labour market is likely to continue going forward. 
• Productivity growth in the last year or so is not from AI.
• Watching the vacancy rate, if that continues to fall it would be unusual if the unemployment rate did not climb.
• It would be inefficient to move to a scarce reserves regime today.
• If productivity is rising, the neutral rate is likely rising as well.
• Data suggests labour demand is falling more than labour supply.
• Bottleneck of AI is energy, it is an emerging issue in many parts of the country.
• Zero job growth does not seem like a stable employment environment. 

Fed Governor Waller's comments underscore a bleak outlook for the labor market, with weak hiring expected to persist due to over-hiring and the impact of AI on job cuts. This perception of a weakening labor market may reinforce dovish sentiment for future monetary policy, as the Fed might need to adjust its rate path to support growth amid declining labor demand.