Employment Trends in Finance and Insurance
Finance and insurance lost 2,900 jobs in December after a year of erratic gains and losses. The losses at the end of the year, led by credit intermediation companies, could be a signal of an upcoming trend in the greater economy: a “white-collar recession”.
The underlying labor market is still very strong, despite the devastating layoffs in tech and the losses in the finance sector. It is feasible that the U.S. economy could slip into a mild recession in late 2023 or early 2024. Historically, low-wage workers fare worse during downturns. But in this case, companies that over-hired in the expanding market now have too many workers – and are shedding them as financial conditions tighten. Industries with higher turnover, like healthcare and leisure and hospitality, still have labor shortages: they can’t lay people off, because they already don’t have enough employees.
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