The labor market is losing steam

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Labor Economics News

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The latest jobs data gives the clearest sign yet that the economy is losing momentum.

Why it matters:The data is not recessionary, but it shows that the Federal Reserve might not be able to continue itsWhat they're saying:

The rise in the jobless rate has been gradual — not the rapid rise normally seen at the onset of a recession — but once the labor market starts weakening, it tends to keep doing so. The rule examines the difference between the current three-month average of the unemployment rate and the lowest three-month average over the past year.The intrigue:

The labor force participation rate among prime-age workers rose to 83.7% — a new high for this cycle, and matching a rate last seen in 2002.

 

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