Hiring Slowdown Reported for October

The monthly jobs report for October 2019 showed a slowdown, falling to a seven-year low for new hires. In addition, fewer employees are raising wages. Only 20% of companies surveyed by the National Association for Business Economics said companies have taken on new workers during the last three months.

In July of this year closer to one-third of companies hired more workers. Octobers figures are the lowest they have fallen since October 2012.

The data comes at a time when many businesses are reporting that sales growth and profit increases are slowing down. Many economists predict that the economy will grow more slowly during 2020, partly due to rising tariffs which force companies to raise prices, which reduce sales.

In addition, companies may worry over an economy perceived as weakening, causing them to refrain from hiring new workers, offer higher salaries, or otherwise invest in growth. 

About 67% of economists that took the survey predicted that the economy will grow at about 1.1% to about 2% from Q3 2019 to Q3 2020. Last year economists guessed that the economy would grow between 2.1% and 3% from Q3 2018 to Q3 2019.

James Cannon

About James Cannon

James Cannon is an experienced hedge fund analyst. He has served on the advisory boards for various different Fortune 500 companies as well as serving as an adjunct professor of finance. James Cannon has written for a variety of Financial Magazines both on and off line. Contact James at james[at]businessdistrict.com