Despite disappointing payroll growth in the jobs report, Ed Yardeni emphasized a resilient labor market. Although payrolls grew by only 73,000, downward revisions to previous months significantly lowered averages. Increases in average workweeks and record-high wages indicate strength. The labor force supply has stagnated, attributed to reduced immigration policies, rather than decreasing demand for workers. Yardeni noted the unusual trend where labor demand mirrors supply fluctuations. Concerns regarding hiring delays due to trade uncertainties add to the complexity of the labor landscape.
"It's hard to put a positive spin on this news, but not for us!" he wrote.
"This implies that the weak gains in payrolls in recent months might have something to do with the supply of labor."
"The demand for labor might have been temporarily weakened by employers' holding off on hiring until Trump's Tariff Turmoil."
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