Steven Wood Quotes on Labor (9 Quotes)

Labor markets are weak and getting weaker.

New claims during the survey week are broadly similar to where they have been for the last two months, when payrolls fell. Continuing claims have been ratcheting steadily higher. Labor market weakness remains.

Despite the loosening of the labor markets, income gains remain sufficient to support spending at a moderate pace.

Most measures of the labor market indicate that the degree of slack is slowly disappearing.

Labor markets are very strong and payroll employment should rise by 200,000 or more in February. The Federal Open Market Committee will continue to raise interest rates.

Labor markets are deteriorating quickly in the wake of the terrorist attacks on September 11, ... The economy was quite weak before the attacks, which have accelerated the pace of layoffs. As layoffs spiral higher, hiring activity has stopped, giving a strong upward push to joblessness.

Even as the pace of layoffs has ebbed, no new hiring is taking place, so continuing claims will rise even further and surpass their peak in the last recession. Labor market deterioration is continuing with no end in sight.

While these data will be welcome by the (Fed), two key questions remain. Will the second quarter spending slow down extend through the rest of the year Economic fundamentals suggest they will. And will the spending slowdown be sufficient to relieve pressure on labor markets and inflation At this point, that is still an open question.

New and continuing claims are at levels that historically have been associated with payroll employment gains of around 225,000. Labor markets are gradually improving.