A January jobs report that showed a surprising rise in employment spurred headlines about the strong U.S. job market and a “soft” economic landing from the COVID-19 pandemic.
However, things are a bit more complicated, Gulf Bank and Trust President Guy Williams told WWL’s Newell Normand this week.
“There’s a lot going on and it starts with the employment numbers,” Williams said. “What we're seeing is a split. The white-collar openings are shrinking. College kids are finding it very difficult to get a job that meets their expectations. And we still have an abundance of service jobs with a lot of churn.”
According to a Wednesday report from Bloomberg, “a sluggish U.S. labor market for white-collar employees,” is leading some to return to the office after a post-pandemic increase in remote work. Deadline also reported that Hollywood actors are struggling to find jobs following guild strikes this summer.
“So, when the… when people talk about, oh, the job market is wonderful, it depends on which job market to service in,” said Williams. “Yes. The white-collar… not so much, the inflation numbers didn’t come in as low as people expected. So that’s presenting a challenge. And that's making folks think that rates will stay higher for longer.”
Williams referenced a Consumer Price Index increase reported for January, and Federal Reserve Bank interest rate hikes intended to bring down inflation. As the year kicked off, some were projecting that the rate hikes would fade away with the “soft” economic landing.
Wars in Ukraine and the Middle East are also making global economics more complicated, Williams added. For example, these conflicts can impact oil prices.
“I think it’s one reason when you survey American consumers, they just don’t feel like things are going well,” said Williams.
Listen to his full talk with Normand here to learn more. They also cover electric vehicle sales being at a stand-still, the commercial real estate challenges in New York and in New Orleans, and the latest on Bitcoin and other crypto currencies.