Strong US Growth Defies Expectations Amid Policy Shifts

The American economy showed unexpected resilience in the third quarter, with the Gross Domestic Product (GDP) expanding at an annualized rate of 4.3%. This performance, recently reported by the Department of Commerce in its initial estimate, significantly outpaced the 3.8% growth seen in the second quarter and blew past the 3.3% consensus forecast held by many economists. While the data usually arrives sooner, the release was pushed back several weeks following a 43-day government shutdown triggered by a budget impasse in Washington this fall.

Several specific factors fueled this late-summer surge. Consumer spending rose by 3.5%, driven in part by a rush to utilize electric vehicle tax credits before they expired on September 30. Furthermore, the trade balance was impacted by tariffs implemented by President Donald Trump, which led to a reduction in imports and a corresponding boost to domestic growth figures. The burgeoning artificial intelligence boom among major corporations also played a pivotal role in sustaining momentum. Reflecting this strength, the OECD recently upgraded its US growth forecast to 2.0% for the current year, though it anticipates a slight cooling to 1.7% in 2026.

A Growing Divide for American Households

Despite these robust top-line figures, the economic reality on the ground feels starkly different for many families. Data from Bank of America suggests that the “GDP wins” aren’t trickling down to low-income households, many of which continue to live paycheck to paycheck. Rising costs have forced a shift in consumer behavior; families are allocating more of their budgets to essential groceries while cutting back on discretionary spending like restaurant meals, apparel, hotel stays, and airfare.

Brian Bethune, an economics professor at Boston College, notes that the average household is essentially “keeping its head above water” as budgets remain incredibly tight. This internal pressure on consumers suggests that the rapid expansion seen in the third quarter may not be sustainable. In fact, many analysts, including Bethune, expect a significant slowdown as we move through the final months of the year, with the fourth quarter unlikely to mirror the summer’s gains.

Tech Innovations Tackle Seasonal Hiring Pressures

As the broader economy fluctuates, businesses are facing the immediate logistical challenge of the holiday season and the subsequent winter sales. This period typically creates a massive spike in job vacancies that HR departments struggle to fill quickly. To address this gap, companies are increasingly turning to specialized technology. One such player is Orbio, a startup that utilizes artificial intelligence to streamline the recruitment process and bridge the gap between overwhelmed employers and waiting candidates.

According to Nacho Travesí, co-founder and CRO of Orbio, their platform uses AI agents to manage candidate interactions 24/7. These assistants can communicate through WhatsApp, voice notes, and phone calls, ensuring that every applicant receives a response—a major shift from the “black hole” of traditional applications where candidates often never hear back. While humans still make the final hiring decisions, the AI handles the heavy lifting of initial resume screening and interview scheduling.

Reducing Bias and Humanizing Resources

Beyond mere efficiency, the integration of AI in hiring aims to solve deeper systemic issues. Orbio’s technology is designed to reduce unconscious bias, as the AI evaluates every candidate against the same objective criteria without the fatigue or personal prejudices that can affect human recruiters. This ensures a more equitable first look at talent regardless of gender, religion, or background.

The ultimate goal for firms adopting these tools is to strip away the administrative bureaucracy that bogs down human resources. By automating the paperwork and initial logistics, HR teams can refocus their energy on the human elements of the workplace—culture, retention, and employee well-being. As the labor market remains a critical component of the US economic narrative, the intersection of macro growth and micro-level tech solutions like these will likely define the business landscape heading into 2026.