Posted 1/17/2024, 2:56:00 PM
Labor Market Cracks Emerging: Job Gains Overstated, Unemployment Rising, and Worker Sentiment Worsening
- Job gain revisions being revised downward, indicating the labor market may not be as strong as it appears
- Most job gains recently have been in non-cyclical sectors like healthcare and government, not economy-driving cyclical sectors
- The pace of increase in the unemployment rate signals potential trouble, historically often foreshadowing a recession
- Job seeker sentiment worsening sharply, with fewer reporting jobs as plentiful
- Key indicators like job openings, quits, and new hires all falling at rates typically seen in prior recessions