In an interview with CNBC, Gary Shilling, a financial analyst known for his accurate predictions, raised concerns about the potential weakness in the labor market. Shilling warned that while the US economy has shown post-pandemic resilience, there are signs of slowing down in the labor market. Despite the current strength in the labor markets, wage gains, quits and service inflation have been indicating weakening.
Shilling emphasized that while a recession in 2023 is not out of the question, it may be delayed due to the current state of the labor market. He cautioned that it’s important to remain vigilant in monitoring economic indicators for any potential signs of weakness. This news serves as a reminder that the US economy is still navigating uncertain waters and it’s crucial to keep an eye on developments in this area.