00:00 Speaker A
Uh interesting report uh on the job market this morning out of Goldman Sachs. They’re looking now for jobs reports. I would imagine moving forward of 30,000 increase on the headline. That’s um that’s just not good. How do you think the market will interpret that? If we get a number like that uh for the next jobs report in early September?
00:32 Speaker B
Yeah, on the optics side, no, that’s not good. That’s uh 30,000 jobs added is much, much lower than the average about a of about 180 to 200k jobs that we saw in the 2010s. A lot has changed since then. I mean, the late the labor force is a lot bigger, so you need to take these headline numbers in context. One thing I’ll point out here is that the labor supply hasn’t grown in 3 months. We haven’t seen that since 2011. And because of that, there are fewer newly unemployed workers entering the labor force that the job market needs to soak up. In a weird way, that’s good for the unemployment rate. That can keep the unemployment rate low. But I challenge investors to think about why this is happening. If the labor supply isn’t growing, is that the best story for the US economy? So going back to what Goldman said, it’s certainly possible. I’d say a 30 a 30k print today is less worrying than it would have been a year ago, but at the same time, you need to think about the trends underneath. If the labor supply isn’t growing, chances are the economy is going to have a tougher time kicking into higher gear.
02:18 Speaker A
All right. Uh big thank you to the opening bid round table for today. Callie Cox, Brooke DePalma, and Ines Ferre. Appreciate it.
Source: finance.yahoo.com
