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

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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’.

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