Barclays says there are “cautious warning signals” the US labor market is cooling

Federal Open Market Committee (FOMC) rate hikes seeping through the jobs markets it would seem. Barclays say they have assessed:

  • Alternative data from US employee profiles send cautious warning signals that the US labor market is not as strong as it was last year
  • the total tally of employees from our alternative data appears to have peaked in Jan′23, and has declined slowly since
  • In fact, net inflows for various job categories have turned negative for a few categories and have been growing less strongly in others

Barclays say that there is a “reluctance” by firms to hire, or fire, workers, and further that workers are unwilling to quit their current jobs.

A cooling jobs markets has implications for the Federal Reserve ahead, blessing the pressure for ‘higher for longer’.

This article was written by Eamonn Sheridan at www.forexlive.com. Source