Not only did the job openings of 162,000 came in light of what the Street was expecting (roughly 183,000), but more importantly the rate of change in the year-over-year pace of employment gains continues to slow. The current estimates show that total employment gains slowed by more than 750,000 jobs. This follows a slowing of 1.4 million in June and nearly 1 million jobs in May. The following chart shows this trend, as compared to year-over-year growth in GDP.
Although employment levels continue to increase, the rate of change in the rate of change suggests the economy is no where near as strong as some would like believe. Additionally, the weakening trends in employment suggest that a higher probability of recessionary conditions.
Although employment levels continue to increase, the rate of change in the rate of change suggests the economy is no where near as strong as some would like believe. Additionally, the weakening trends in employment suggest that a higher probability of recessionary conditions.
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