Are job cuts just a blip or a sign of trouble ahead?

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In March, US employers announced 90.3k job cuts, the highest since January 2023. Although Q1 cuts were down 4.9% from the previous year, they surged 120% from Q4 2023. Conversely, the US added 303,000 jobs in March, surpassing expectations and the 12-month average.

However, behind the positive headlines lies a more nuanced story. From November to March, the US lost 1.8 million full-time jobs, while part-time jobs increased by 1.9 million. This shift highlights concerns about the quality and stability of employment.

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Despite job gains in sectors like healthcare, government, and construction, doubts linger. Are these figures truly reflective of economic health?

With the Federal Reserve closely monitoring these metrics, the implications are significant. Moreover, the sustained rise in interest rates suggests a cautious outlook.

While the labor force participation rate shows improvement, it remains below pre-pandemic levels. This raises questions about the depth of the recovery and the resilience of the labor market.

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https://globalmarketsinvestor.substack.com/p/the-us-labor-market-is-much-weaker