Chart of the Week: Leading Indicators Point To Employment Slowdown

Has the US labor market has had its day? “Analytically, this expectation is based on a deceleration in GDP growth primarily caused by the end of the housing boom. It has been the main driver behind the increase in jobs for years. But more important is the fact that corporate profit growth should have peaked: input costs have soared, but pricing power did not. Therefore, companies are becoming less keen to hire,” according to HVB Group.

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Leading Indicators Point To Employment Slowdown
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Slowdown

Source:  HVB Group

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HVB Group further notes: “This is already reflected in some forward-looking employment indicators. Hiring plans are tending south as is the CEO confidence survey. This implies that CEOs will reduce new hires or even slash some of their headcount further. But the most striking warning signals are the help wanted index as well as temporary employment.”

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Quote of the Day

"He who knows others is wise. He who knows himself is enlightened." 
Lao Tzu

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What's been said:

Discussions found on the web:
  1. John Navin commented on Jul 12

    “Hiring plans are tending south as is the CEO confidence survey. This implies that CEOs will reduce new hires or even slash some of their headcount further…”

    Or reduce the salary and perks of the CEO — always a good place to start.

  2. Bob A commented on Jul 12

    Higher fuel costs and interest rates don’t matter (Mr. Bush) ? Try telling that to Brunswick.

  3. John F. commented on Jul 12

    Since Direct Revenue is in the spyware business, it would seem only fair for aggreived Internet users to syndicate their employees’ home addresses, the schools their children attend, and the names of their pets. [Not even their business address seems readily available.]

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