Finance & Insurance Snapshot

02 Feb 23

Economic Slowdown and the Possibility of a "White-Collar Recession”

Finance & Insurance Labor Market Snapshot

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.

Enjoying this report?

Download to continue reading

Demography is Destiny

16 Mar 23
The post-pandemic labor market has been extremely tight with many vacancies left unfilled.
5 minutes

The Fed’s Dilemma: Financial Distress or Entrenched Inflation?

14 Mar 23
Silicon Valley Bank’s failure from a lightning-quick bank run on March 10, the second largest in US history, has spooked financial markets.

Sign up to receive the latest updates!