Citi Economist Veronica Clark appears on Morning Brief to look ahead to the December jobs report expected out this Friday, January 10.
Clark tells hosts Brad Smith and Seana Smith she anticipates 120,000 non-farm payroll additions — below consensus estimates of 155,000 — with the unemployment rate rising to 4.4% from 4.2%.
"We're coming in on the softer, more pessimistic side of that," Clark admits, with the economist also warning about potential layoffs and how this could significantly slow down consumer spending as well as economic growth.
She expects a "gradual increase" to the unemployment rate if the hiring environment remains weak, leading to workers dropping out of the labor market:
"We've had some... increase in return to office mandates, maybe it's remote workers who are choosing to leave jobs. I think all of this is maybe, you know, a way that businesses are trying to reduce labor costs. You know, you're not hiring. You're you're hoping that people quit. You know, you don't have to lay them off yet, but you are still trying to cut labor costs..."
Related Videos
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Josh Lynch