Help No Longer Wanted?
Fourth quarter earnings releases have provided insight into corporate margin pressures, but labor market commentary signals that some of these headwinds may be abating. The share of management teams citing labor shortages, now at less than a third of the peak in 3Q 2021, indicates loosening in the jobs market. In our view, continued supply-demand rebalancing will be necessary to slow wage growth and broader inflation.
Source: GS Data Works, GS Global Investment Research, and GS Asset Management.