Charles Schwab's senior investment strategist Kevin Gordon tells CNBC's Squawk Box Asia that the U.S. already sees rolling recession in some pockets of the economy and young jobseekers are among the worst hit in the current hiring slowdown.

New York

The U.S. labor market is currently characterized by both low hiring and low firing rates, creating a unique environment compared to typical economic cycles. While the overall unemployment rate remains relatively low, youth unemployment has climbed to 10.5%, a rate of increase usually seen during recessions. This rise is particularly affecting recent graduates and those seeking entry-level positions, as companies reduce hiring.

Additionally, uncertainty around tariff policies has contributed to a slowdown in business investment and revisions in corporate earnings guidance. Businesses have indicated that stability in tariff rates is essential for planning, and frequent changes in policy have added to economic unpredictability. The combination of these factors is resulting in a challenging job market, especially for younger workers.

Youth hit hard as U.S. job market weakens

you know, you point to the fact that so far, we've been in an environment where there's been low hiring, but also low firing, and that's okay. What's the more important part to be watching? We've seen the low hiring already. That's what's been spooking people, right? Is it the low firing that you're more concerned with? Yeah, well, more concerned with if that component starts to change. I mean, that's really when you go into a full-blown labor cycle, is when you start to see, if and when you start to see, you know, at least in short order, if you start to see that firing aspect pick up, and what's been so unique about this cycle, so many things about it, and really this cycle being post-pandemic, so almost the past, you know, four, four and a half years, where, and we've talked a lot about it, I've talked about it with you, in particular, you know, the fact that the economy, at least in the U.S., has been through a series of rolling recessions, where at times you've had manufacturing, or consumer goods, or housing go into their own recessions. You could argue housing is still in its own recession, but it hasn't broadened out to the entire economy, and you haven't seen everything collapse all at once. That's typically what you would see in a normal recession. We're not in a normal, or a normal environment. We're certainly not in a normal environment, but one of the aspects that is adding more to that theme is the fact that there have been many recessions now, even in labor. The youth unemployment rate here in the United States is at 10.5%. The rapidity with which that has gone up over the past couple of years is a speed that you only see in recessions. So that alone tells you that we are in even a more unique scenario for labor, but that's a group and a cohort that has been disproportionately hit by the low hiring environment. You think about new college grads, the ones who are looking for entry-level jobs. If companies are not hiring for whatever reason, that's disproportionately going to hit that cohort. And then vice versa on the firing side, we have seen pickups and layoffs in certain pockets of industries, but again, it hasn't been broad enough to sort of lead to what you would typically see in a labor cycle. So that's really what we're keeping an eye on, how much of those keep, you know, how much those two aspects keep holding together in the context of what is a really interesting and probably in the long term, a pretty poor scenario in terms of labor supply in the U.S. But as long as you have labor supply coming down and labor demand coming down, all else equal, which of course is never the case, but all else equal, that keeps the unemployment rate relatively low. Kevin, what about tariffs? How much of a wild card is that for the economy as well as for inflation? Well, I think there are a lot of different avenues that goes through in terms of the U.S. companies who are paying the tariffs getting refunded what they've paid the government. But then presumably you have the administration being able to explore, you know, many more avenues and a wide array of mechanisms that can be used to implement tariffs, you know, whether they're through different sections of, you know, the Tariff Act or the Trade Act, whatever he wants to use. So there are ways to reimplement those. But the logistics, I think, of having to go through a potential refunding and then a potential repayment, that's probably more of a wild card, especially when you think about the nature of tariff policymaking so far this year. You know, we think a lot of the slowdown in, you know, business CapEx and a lot of the polls to earnings guidance and the fact that companies revised their estimates so much in April only to, you know, bring them back up later in the year. A lot of that was just driven by the nature of the policymaking. It wasn't necessarily companies saying, you know, a high tariff is going to hurt our business in perpetuity. Companies can adjust ultimately, but they need to know what the policy is. That's what a lot of them have told us. And that's really what we've seen reflected in the data. So as long as the tariff rate is set and not necessarily changed all the time, that's where we think you can get some stability and where the wild cards maybe, you know, start to fade.

The United States and China reached a framework agreement to switch short-video app TikTok to U.S.-controlled ownership, U.S. officials said.

Washington County

U.S., China reach framework deal on TikTok

U.S. Secretary of State Marco Rubio met in Jerusalem with Israeli Prime Minister Benjamin Netanyahu, as close U.S. ally Qatar gathered other Arab nations' leaders for a summit to issue unified condemnation of last week's Israeli airstrike targeting Hamas leaders in the Qatari capital.

Jerusalem

Middle East Conflict

What to know about Rubio's trip to Israel, Qatar summit

President Trump announced the U.S. military has carried out a second strike on alleged Venezuelan "narcoterrorists" in international waters. Three men were killed.

Washington

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Arab and Islamic leaders are gathering in Qatar for an emergency summit following an Israeli attack on Hamas leaders in Doha. The meeting aims to show unity and increase pressure on Israel.

Doha

Arab, Islamic leaders meet in Qatar after Israeli attack on Hamas

HBO's medical drama, "The Pitt" beat out heavily-favored Apple TV's "Severance" for outstanding drama series at the Emmy Awards. Meanwhile, Apple TV's "The Studio" walked away with 13 awards and broke the Emmy record for the most wins by a comedy in a single season.

Los Angeles

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U.S. Secretary of State Marco Rubio arrived in Israel on Sunday to meet with Prime Minister Benjamin Netanyahu and other officials amid the nation's recent strike in Doha, Qatar, and intensified attacks in Northern Gaza.

Israel hosts U.S. Secretary of State Marco Rubio

Over the weekend, tens of thousands of people marched through London in a rally billed as in support of free speech. Many of the chants and speeches at the rally, which was organized by a far-right activist, were protesting against immigration.

London

Thousands in London march in rally organized by far-right activist

U.S. and Chinese officials concluded a first day of talks in Madrid on their strained trade ties, a looming divestiture deadline for Chinese short-video app TikTok, amid Washington's demands that its allies place tariffs on imports from China over its purchases of Russian oil.

Madrid

Global Tariffs

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Police are searching for a motive in Wednesday's killing of conservative activist and influencer Charlie Kirk. Authorities say interviews with family and friends of the 22-year-old suspect suggest he could have been radicalized in the dark corners of the internet.

Orem

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U.S. Secretary of State Marco Rubio said ahead of the trip that he will be seeking answers from Israeli officials about how they see the way forward in Gaza. Rubio's trip comes after Israel's attack on Hamas leaders in Qatar that upended efforts to broker an end to the conflict.

U.S. Secretary of State Marco Rubio in Israel for talks

Five U.S. F-35 fighter jets landed in Puerto Rico amid escalating tensions with Venezuela. Separately, Caracas said 18 armed U.S. Navy personnel raided a tuna boat sailing in Venezuelan waters.

San Juan

U.S. sends jets to Puerto Rico amid escalating tensions with Venezuela

U.S. President Donald Trump said he believes the Russia-Ukraine war would end if all NATO countries stopped buying oil from Russia and placed tariffs on China of 50 percent to 100 percent for its purchases of Russian petroleum.

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U.S. Secretary of State Marco Rubio arrived in Israel on Sunday, as Israel intensified its attacks against northern Gaza. The trip is taking place after President Donald Trump rebuked Israel over the unprecedented attack against Hamas leaders meeting in Doha.

Tel Aviv-Yafo

Marco Rubio visits Israel to push for Gaza ceasefire talks

NATO announced plans to beef up the defense of Europe's eastern flank on Friday, two days after Poland shot down drones that had violated its airspace in the first known action of its kind by a member of the Western alliance during Russia's war in Ukraine.

Warsaw

Ukraine Invasion

NATO bolsters its eastern flank after Russian drones hit Poland

Protests broke out in Chicago on Saturday against President Trump's immigration crackdown. A group of Catholic clergy led what they called a "People's Mass" outside the Great Lakes Naval Base. The base will also be used by Immigration and Customs Enforcement as a staging area for deportations.

Chicago

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More than 100,000 people took to the streets in London on Saturday, in what's believed to be the largest anti-immigration protest in British history. Organizers called it a "Unite the Kingdom" rally.

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President Trump signaled a new position on Russia's war with Ukraine. He said the U.S. will agree to additional sanctions on Moscow, but only when NATO allies stop buying Russian oil. Willie James Inman has more details.

Trump says NATO must stop buying Russian oil

Tyler Robinson, the 22-year-old suspect in the murder of conservative activist Charlie Kirk, is being held in Spanish Fork, Utah. Officials have yet to identify a precise motive for Wednesday's shooting. Carter Evans has new developments.

Suspect's family says he recently became more political

NATO has launched operation Eastern Sentry to bolster its presence along the eastern flank of Europe, after Russian drones were found in Poland on Wednesday. Meanwhile, U.S. President Donald Trump is calling on all treaty members to increase economic pressures on Russia.

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More than 100,000 people marched through central London on Saturday in a 'Unite the Kingdom' demonstration against immigration organized by far-right activist Tommy Robinson. Police said a number of officers were assaulted.

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A former chief justice has been sworn in as Nepal's interim prime minister. For many people, Sushila Karki's appointment promises change. Days of violence and anti-government protests left at least 51 people dead.

Kathmandu

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A civil war within the Sinaloa cartel in western Mexico has forced thousands of people to abandon their villages. Rival factions are battling for territory and control. Communities caught in the middle of the violence are demanding change.

Culiacán

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The man accused of killing conservative commentator and activist Charlie Kirk is being held without bail in a Utah jail. Meanwhile, vigils and memorials across the country honored Kirk as his widow made her first public remarks since his death.

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President Trump has backed down on his plans to send the National Guard to Chicago, for now. Instead, he told Fox News that federal troops will be deployed to a different city.

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A suspect is in custody after the deadly shooting of conservative activist Charlie Kirk. Authorities say 22-year-old Tyler Robinson is being held at Utah County Jail, pending formal state charges, which are expected to be filed on Tuesday. CBS News' Andres Gutierrez and Anna Schecter have more.

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The United Nations General Assembly has overwhelmingly voted to endorse a declaration outlining "tangible, timebound, and irreversible steps" towards a two-state solution between Israel and the Palestinians ahead of a meeting of world leaders.

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In Tunisia, the humanitarian aid flotilla for Gaza is set to leave Tunis. About 40 boats will try to deliver aid to the Palestinians under blockade. In Tunisia the departure was not easy, as two boats from the flotilla were subject to reported drone attacks.

Tunis

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Brazil's Supreme Court has sentenced firebrand ex-president Jair Bolsonaro to 27 years in prison for coup plotting at the end of a landmark trial that divided the nation and drew U.S. fury.

Brasilia

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Israeli Prime Minister Benjamin Netanyahu signed an agreement to push ahead with a controversial settlement expansion plan that would cut across land that the Palestinians seek for a state. "There will never be a Palestinian state. This place is ours," Netanyahu said.

Breakdown