The Labor Market Isn’t Everything It Appears to Be

White-Collar Woes

On the surface, the U.S. labor market looks strong: Job growth is chugging along and the unemployment rate remains below 4%.

The healthy labor market is a big part of why the Federal Reserve has felt confident enough to keep its monetary policy so restrictive. Remember: The Fed has two mandates, keeping inflation in check and maintaining “maximum” employment.

So far so good. But on a closer look, there are some cracks in the job market, especially when it comes to white-collar jobs.

More Than Meets the Eye

White-collar workers find it harder to find a job today than it was at the beginning of 2023.

Although the economy is adding jobs overall, most new positions are within the healthcare, education, and hospitality sectors. Without those industries, America’s private sector lost jobs in the second half of 2023, especially in the professional and business services category.

Overall hiring rates have also seen a significant cooldown since their peak in October 2021 and now sit below pre-pandemic levels.

Part of the Plan?

This cooling in the job market might be bad news for white-collar job seekers but just what the Fed intended and part of its plan to continue to bring down inflation. Some economists see it as a much-needed correction to bring balance back to the job market.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS23121502