The Labor Market Isn’t Everything It Appears to Be

Estimated reading time: 3 minutes

White-Collar Woes

On the surface, the U.S. labor market looks strong: Job growth is chugging along and the unemployment rate remains below 4%.

The healthy labor market is a big part of why the Federal Reserve has felt confident enough to keep its monetary policy so restrictive. Remember: The Fed has two mandates, keeping inflation in check and maintaining “maximum” employment.

So far so good. But on a closer look, there are some cracks in the job market, especially when it comes to white-collar jobs. 

More Than Meets the Eye

White-collar workers find it harder to find a job today than it was at the beginning of 2023.

Although the economy is adding jobs overall, most new positions are within the healthcare, education, and hospitality sectors. Without those industries, America’s private sector lost jobs in the second half of 2023, especially in the professional and business services category.

Overall hiring rates have also seen a significant cooldown since their peak in October 2021 and now sit below pre-pandemic levels.

Part of the Plan?

This cooling in the job market might be bad news for white-collar job seekers but just what the Fed intended and part of its plan to continue to bring down inflation. Some economists see it as a much-needed correction to bring balance back to the job market.

Disclaimer
SoFi Securities (Hong Kong) Limited and its affiliates (SoFi HK) may post or share information and materials from time to time. They should not be regarded as an offer, solicitation, invitation, investment advice, recommendation to buy, sell or otherwise deal with any investment instrument or product in any jurisdictions. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
SoFi HK does not make any warranties about the completeness, reliability and accuracy of this information and will not be liable for any losses and/or damages in connection with the use of this information.
The information and materials may contain hyperlinks to other websites, we are not responsible for the content of any linked sites. The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi HK. These links are provided for informational purposes and should not be viewed as an endorsement. The risk involved in using such hyperlinks shall be borne by the visitor and subject to any Terms of Use applicable to such access and use.
Any product, logos, brands, and other trademarks or images featured are the property of their respective trademark holders. These trademark holders are not affiliated with SoFi HK or its Affiliates. These trademark holders do not sponsor or endorse SoFi HK or any of its articles.
Without prior written approval of SoFi HK, the information/materials shall not be amended, duplicated, photocopied, transmitted, circulated, distributed or published in any manner, or be used for commercial or public purposes.