By: Joseph Young
The U.S. stock market has demonstrated signs of recovery, but the Midwest jobs market is in decline as the manufacturing sector struggles to rebound.
Nonfarm wage and salary employment, most of which are attributed to manufacturing-related jobs, has dropped from 0.8% to 0.4% in the past six months, since April.
Manufacturing, in particular, has seen salary employment plunge from 1.4% to an expected 0.3%, by more than three-fold in less than a year.
The U.S. stock market has successfully maintained its momentum since the beginning of 2019, and strategists generally anticipate the momentum to be carried out heading into 2020 as the Fed sustains an accommodative stance towards a low benchmark interest rate.
However, there are concerns that the U.S. manufacturing sector is moving into a full recession territory that would require more than a partial trade deal with China for a swift short term recovery.