Labor Market Continues to Slow
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The American economy is in a bit of an odd place. This is to be expected leading up to a major election, but the latest reports have experts confused. Vital economic data from the last month has been released about the labor market and consumer confidence, and they seem to be contradicting one another.
A common sign of a recession, and what had many panicking over the summer, is a slowing job market. July’s labor report revealed that unemployment had risen to a 3-year high, sparking fears of an incoming US recession. Since then, August showed improvement, but now that the September report has been released, we’re back on a downward trend. The Bureau of Labor Statistics' recent report placed new job openings in September at merely 7.44 million, the lowest since January of 2021.
However, concerns about a recession typically brought about the labor market taking a hit like this aren’t completely manifested yet. This is because despite the declining job market, consumer confidence has inexplicably soared—by a lot. The Conference Board’s consumer confidence index rose to 108.7 over last month’s 99.2. This is the biggest jump since March of 2021, and the current index is the highest in nine months.
Why is this happening? Despite job openings faltering quite significantly, 35.1% of consumers view the market as “plentiful”, up from last month by 3.8%. Accordingly, the percentage of consumers who view current jobs as “hard to get” fell to 16.8%. This indicates that the recession bell shouldn’t be rung yet, but it’s always a good idea to remain cautious and prepared.
Fluctuations of economic strength can happen around an election, so while we may be safe at the moment, the US economy could go in either direction following November 5th. Still, this doesn’t mean you should panic. With a sound business plan and smart financial advisors by your side, you can endure whichever turn the economy may take. For the right guidance, give XQ CPA a call to schedule an intro meeting. We’d love to work with you.
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