Frozen Labor Market Persists

Bob Elliott · Nonconsensus · February 06, 2026 at 11:24 · ⏱ 3 min read  | Read on Substack ↗
Summary
=== SUMMARY ===
  • The US labor market is stagnant ("frozen"), with job growth hovering just above zero, soft hiring, and low firing rates.
  • The economy is currently dependent on consumer dissaving (drawing down savings) to maintain spending levels. The author posits this dynamic is reliant on a persistent wealth effect, which will likely require future dovish monetary/fiscal support ("Easy Street policies").
Summary
The author discusses the persistence of a 'frozen' labor market, characterized by low job growth and turnover. Due to a government shutdown delaying the official employment report, analysis relies on alternative data sources, with some survey data potentially offering a 'glimmer of hope' for the future.
  • The labor market continues to show low job growth and turnover.
  • The official employment report is unavailable due to a government shutdown.
  • Analysts must turn to other data sources to understand current labor market conditions.
  • The author notes a potential 'glimmer of hope' in recent survey data.
Read time 3 min
Length 3,633 chars
Category finance
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