Cooling but not cool; US labor market remains robust but is normalizing

Global Research Unlocked

Job gains will slow but healthcare has room to run

The labor market has remained robust, adding an average of about 250k jobs monthly since the start of the year. But services jobs account for the bulk of the recent growth and at this point, demand in many parts of the service economy have fully recovered. Additionally, structural changes and shifts toward automation accelerated amidst the difficult hiring backdrop. Michael Gapen addresses questions about how much growth is left in services jobs, he explains what could account for the somewhat different messages being sent by the two government employment surveys and addresses the fading boost from fiscal policy. The US Economics team believes that job gains will slow but they're not expecting a sharp decline, partly because certain job categories like healthcare still have room to add employees.

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