Recession Alert: Over Half of U.S. Industries Now Cutting Jobs, Moody’s Warns

A stark economic warning from Moody’s Analytics reveals that two-thirds of U.S. states are either in recession, at high risk, or treading water – representing about 66% of America’s GDP.

Chief economist Mark Zandi identifies 22 states already in trouble, including major economies like Massachusetts and Washington, while only 16 states continue expanding. The recession probability stands at 49% for the next year, with the economy most vulnerable in late 2025.

Red flags are mounting: over half of U.S. industries are cutting jobs, and recent employment revisions show June’s job growth was actually just 14,000, not the initially reported 147,000. Only healthcare continues meaningful hiring.