AUGUST 2024 INDUSTRY NEWS AND TRENDS
U.S. sees slow job growth and rising unemployment
According to some experts, the state of the U.S. job market could indicate an economic slowdown or even a recession ahead. The unemployment rate has reached its highest level in nearly three years, and the number of jobs added to the economy in July fell short of predictions by 61,000.
What rising unemployment could mean for small businesses
Despite the Fed’s predictions for the labor market, unemployment is rising and wage growth is slowing. In July, 15% of small business owners planned to create new jobs, which is down 30% from 2021. Those business owners could benefit from a robust pool of candidates to hire from, but some may also experience a business slowdown as cash-strapped consumers pull back on spending.
American confidence in the country’s economy remains low
American confidence in the economy has rallied somewhat since it bottomed out at -58 in 2022, but it remains low today according to Gallup’s Economic Confidence Index.
Sentiment about the current and future American economy registered -35 in July. At the time of polling, nearly half of Americans (46%) rated the current economic conditions as “poor” and 70% believe the economy is “getting worse.”
Wayfair sales woes could signal a slowdown in consumer spending
Home-goods retailer Wayfair recently adjusted their growth projections, revenues, and earnings per share due to sluggish sales that the company’s CEO likens to the decline the company saw during the great financial crisis of 2008. The company has also enacted mass layoffs in an effort to reduce costs.
American households see lower liquidity, higher credit card delinquencies
Adding to the multiple indicators of a potential slowdown on consumer spending, the Federal Reserve Bank of San Francisco just published research indicating that liquid assets for American households are lower than expected, with middle- and low-income households being the hardest hit. Credit card delinquencies among these households have also risen fast.
