ILCB - U.S. Jobs Market Remains Under Stress

• Jobless claims continue to trend lower as firms look to both hire and retain the staff they currently have. Virtually all business surveys suggest companies want to hire, but are struggling to do so.
• The lack of supply of workers is increasingly becoming a strain on the recovery story and will inevitably add to inflation pressures.
• A different growth composition is a factor that explains the anomaly between activity and jobs. There is more consumer and business spending on physical things (less worker-intensive), while consumer services such as leisure and hospitality (more worker-intensive) continue to lag.

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