Why the Job Market Is Changing Faster Than Ever

"now when you get numbers that the job market is stronger than expected and inflation is better than expected that doesn't give the Federal Reserve Bank much fuel or ammunition to keep cutting interest rates very aggressively"

"and this is where a lot of people on Wall Street and every investor is paying attention to what the Federal Reserve Bank does because they want to know how aggressive are they going to be when it comes to cutting interest rates because that can impact number one how expensive the debt is going to be for corporations and number two what future sales might look like for those same corporations"

"we just entered the next phase of the global economy the Federal Reserve Bank is now cutting interest rates Canada is cutting interest rates China is now cutting rates and countries across Europe are also cutting interest rates"

"between 2019 and 2024 the reported inflation number over these 5 years is just over 23% I'm rounding down here on the inflation numbers over that same time period household income Grew From around 68 69,000 a year to an estimated $81,000 a year which is a growth of just under 18%"

"what we have seen not just over the last 5 years but over the last number of decades is that we have seen growth in income but the growth of income has not kept up with the growth of in inflation and the growth of inflation has not kept up with the growth of asset prices"

"if you really want to be able to build wealth yes it's nice to have a good income but it is important to transfer this income into assets"

"if you continue buying good assets well chances are if the economy continues to grow that you're going to be able to continue to see that growth in asset prices which will outpace the growth in incomes"

"if you want to build wealth you have to be an asset owner which means you have to be an investor"

"now in 2024 it's become much more even and so the power Dynamic has shifted"

"you're seeing many more employers feeling more confident in implementing stronger work policies such as return to office"

"right now at the time we recording this video it has jumped up to 4.1% which historically is still extremely low but it is a little bit higher than we were over the last couple of years"

"as interest rates went up between 2022 and 2023 we saw a surge in layoffs and now as interest rates go down economists and the Federal Reserve Bank are hoping that this is going to help stimulate the job market even more"

"in 2024 many corporations for the first time are starting to see these debts start to readjust at a much higher interest rate than what they readjusted it at back in 2020 or 2021 when interest rates were at their lowest levels ever"

"spending growth has slowed from above 3% in the second half of last year to a trend rate of probably around 2% today in 2024"

"as the rate of inflation Falls so is the rate of wage growth take a look at this chart this is a chart from the Federal Reserve Bank showing wage growth in America and you can see the fairly steady decline in wage growth ever since 2022"

"the average sales price for a house in America went from around $258,000 to $433,000 which is an increase of around 67% and the average new car sold in America went from about $338,000 in 2019 to just under $48,000 in 2024 which is an increase of around 24%"

"College prices have increased by around 30% a little over 30% over this 5year period as well"