US: Labour demand slipped way before supply – Standard Chartered

According to a recent report from Standard Chartered, US labor demand has slipped before the supply was fulfilled. Notably, since April 2024, Non-Farm Payrolls (NFP) may have been overstated by around 60,000 jobs per month due to birth-death adjustments. Actual job growth likely has been much weaker than the market initially perceived. This information raises concerns about the health of the labor market and the broader economic growth outlook, necessitating caution for investors. The slowdown in labor demand can lead to decreased consumption and investment, potentially adversely affecting the economy overall. Markets may need to reassess the direction of the US economy in light of this information, especially concerning how it might influence the Federal Reserve's interest rate policy.