While February's headline job numbers boasted a strong increase, a closer look at the data reveals signs of a potential slowdown in the U.S. labor market which could prompt the Federal Reserve to reconsider its stance on interest rates, with potential cuts as early as spring on the horizon.
'The Wells Fargo report draws attention to a sustained decline in temporary help services employment, further hindering the labor market, a segment often viewed as a leading indicator for overall labor market health. The continued downturn in the area, coupled with a subtle but notable reduction in average weekly hours across the board, signals caution.
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