Wage Watch: The recession without job losses – 7 charts on US employment
“It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages.” Henry Ford
Some pundits have labeled the current economic environment a “White Collar Recession” as lay-offs in Technology and Financials have caught an increasing number of headlines while the overall service economy has continued to fare well. In this piece, we take a look at the health of the US labor market while we are waiting for the other shoe to drop.
Who’s hiring and who’s firing?
If we look at the Challenger job cut numbers from January (and Q4), we find that job cuts are currently undertaken in size in Technology, Retail and Financial services. On the other hand, the leisure economy seems to be BOOMING, which goes hand in hand with a strong end-consumer demand in the services economy.
Chart 1. Who’s firing and who’s firing?
Some have labeled 2022 a “white collar recession” as the job market has remained stable throughout. Are there early signs of weakening in US labor markets? And what would be the consequences? We look at 7 charts here.
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