Everyone wants to know the truth about what’s really going on in the U.S. job market.
Things were looking pretty strong in the winter. But in the last two months, that labour market data has deteriorated.
Some experts are attributing this to warm weather “payback.” This is the idea that hiring during the recent unseasonably warm winter came at the cost of spring and summer hiring.
Business Insider recently sat down and asked Jim O’Neill about this.
“Clearly, what’s happened in the past couple of weeks [in the U.S. labour market] gives some support to those that argue much of the winter strength was exaggerated by the mild weather,” said O’Neill. “Again, I’m suspicious of that argument, but I’m also sufficiently respectful of other people’s views including some that I know very well.”
O’Neill thinks the job market sceptics who are pushing the payback argument are running out of time.
“If we get to the middle of May and we haven’t seen a big payback, then the argument will lose its validity.”
In our interview, O’Neill also said “jobless claims are not to be ignored.” For more on that, here’s the video:
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