The U.S. job market has been growing in recent months, but this isn’t an indicator of a long-term trend, according to Goldman Sachs. The investment bank and financial services shared this prediction in a note issued to clients on Friday.
Goldman’s chief economist Jan Hatzius foresees 215,000 jobs added per month throughout the summer and then expects the number to drop to 160,000. If his prediction comes true, that would be more than a 50% drop compared to the March, April, and May average of 408,000.
“Softer company-level hiring expectations and slower GDP growth in the second half of the year point to slower payroll growth in coming months,” said Hatzius.
Hatzius also pointed out “recent anecdotes of hiring freezes” and companies becoming more selected with their hiring.
The U.S. job market bounced quickly after struggling at the start of the pandemic. However, things don’t look so bring for job-seekers right now while even those that have jobs are struggling to keep them. This is especially the case in the tech industry, which is experiencing layoffs left and right. According to Crunchbase, more than 17,000 workers in the U.S. tech sector have been let go in the past year.
