Updated
Updated · investinglive.com · Aug 7
Fed's Barkin Sees 0-to-Modest Job Gains as Wage Inflation Stays Absent
Updated
Updated · investinglive.com · Aug 7

Fed's Barkin Sees 0-to-Modest Job Gains as Wage Inflation Stays Absent

3 articles · Updated · investinglive.com · Aug 7

Summary

  • Zero-to-modest job gains are showing up in the labor market, Thomas Barkin said, describing conditions as "low hire, low fire" and in weak balance.
  • Barkin said the jobs picture "doesn't feel very good," though he noted it had looked similar earlier this year before payroll growth later ran near 100,000 a month.
  • Corporate earnings are still strong and growing nicely, he said, and he is watching whether that strength feeds through to hiring.
  • On inflation, Barkin said he does not see wage pressure now; pricing power remains stronger in business-to-business markets than on the consumer side.

Insights

If the economy needs far fewer jobs to stay stable, are young workers permanently locked out of this low-hire market?
With companies too cautious to hire but profitable enough to avoid layoffs, what hidden trigger could shatter this fragile equilibrium?
Why are businesses successfully raising prices on each other while everyday consumers finally refuse to pay more?