This Phenomenon in the US Job Market Only Occurs During "Recession Periods"!

Recently, Wall Street economists have frequently issued warnings about the US job market, and the "recession theory" has made a comeback. Economists pointed out that the US economy barely added any jobs last month, with most industries actually cutting positions.

Key signs from the labor market indicate that it is deteriorating, and the healthcare industry is one of the few sectors not making things worse. The latest employment report shows that the US added only 22,000 jobs in August, with revisions to previous months revealing an actual decline in June. Meanwhile, the unemployment rate slightly rose to 4.3%, a four-year high.

In a report released over the weekend, Torsten Sløk, Chief Economist at Apollo Global Management, noted that job growth in tariff-affected industries was negative. Last month, the manufacturing sector alone cut 12,000 jobs. In contrast, the healthcare and social assistance sector added 46,800 jobs, while leisure and hospitality added 28,000.

However, this trend worries Zandi. He wrote on X on Sunday: "The most unsettling aspect of the job market slump may be its heavy reliance on healthcare and hospitality, to the point where there is almost no job growth without these sectors. Since the beginning of this year, the economy has created a mere 600,000 jobs, but without growth in these (healthcare and hospitality) industries, job growth would be zero."

Data from the US Bureau of Labor Statistics shows that so far this year, the healthcare and social assistance sector, combined with leisure and hospitality, has added a total of 855,900 jobs. This means that without these industries, the US economy would have actually lost over 250,000 jobs.

The diffusion index in the employment report measures the concentration of growth. An index below 50 indicates that more industries are cutting jobs than adding them. In August, the index was 49.6, with a three-month average of 47.9.

【越南语】This Phenomenon in the US Job Market Only Occurs During "Recession Periods"!

Recently, Wall Street economists have frequently issued warnings about the US job market, and the "recession theory" has made a comeback. Economists pointed out that the US economy barely added any jobs last month, with most industries actually cutting positions.

Key signs from the labor market indicate that it is deteriorating, and the healthcare industry is one of the few sectors not making things worse. The latest employment report shows that the US added only 22,000 jobs in August, with revisions to previous months revealing an actual decline in June. Meanwhile, the unemployment rate slightly rose to 4.3%, a four-year high.

In a report released over the weekend, Torsten Sløk, Chief Economist at Apollo Global Management, noted that job growth in tariff-affected industries was negative. Last month, the manufacturing sector alone cut 12,000 jobs. In contrast, the healthcare and social assistance sector added 46,800 jobs, while leisure and hospitality added 28,000.

However, this trend worries Zandi. He wrote on X on Sunday: "The most unsettling aspect of the job market slump may be its heavy reliance on healthcare and hospitality, to the point where there is almost no job growth without these sectors. Since the beginning of this year, the economy has created a mere 600,000 jobs, but without growth in these (healthcare and hospitality) industries, job growth would be zero."

Data from the US Bureau of Labor Statistics shows that so far this year, the healthcare and social assistance sector, combined with leisure and hospitality, has added a total of 855,900 jobs. This means that without these industries, the US economy would have actually lost over 250,000 jobs.

The diffusion index in the employment report measures the concentration of growth. An index below 50 indicates that more industries are cutting jobs than adding them. In August, the index was 49.6, with a three-month average of 47.9.