Business Hiring Sees Troubling Decline
October 29, 2019
While monthly job numbers have continued to be strong and unemployment remains historically low, there are early signs that we are in a cyclical downturn in the job market. A recent survey from the National Association for Business Economics shows that the downturn may be accelerating.
According to the NABE, hiring has fallen to a seven-year low. Just one-fifth of the survey respondents said they have added to their workforce in the past three months. This is down from one-third in July. A broader measure of job increases in the survey fell to the lowest level since 2010.
A downturn in employment could mean trouble for the broader economy, which has been propped up by consumer spending. This could serve as the first sign that the economic weakness that has largely been isolated to manufacturing could be spreading to the rest of the economy.