Job hoarding. It's a thing.

Employers are maintaining headcounts even as demand softens. 

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What about the jobs?
Welcome to the Know the Difference Minute for Thursday, June 8th.
Months ago, the Fed Chairman shared we might see some short-term pain in the job market as rates headed higher. Was today’s Labor Department report an early sign? New claims surged to the highest level since 2021.
Maybe. Maybe not.
We’re reading more about what’s called “labor hoarding”. That means employers are maintaining headcounts even as demand softens. The Conference Board says it’s for real. Companies are holding on to people, hoping to ride out what might be a mild recession, then getting back to business. Less expensive than spending money trying to attract new talent.
That also squares with the Business Roundtable CEO sentiment report that expects little change in headcount. No one wants to scramble for employees again.
There’s an old saying. Stay ready so you don’t have to get ready.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.