Despite a modestly lower headline than expected, and noise from Hurricane Florence, today’s #payroll data continued the trend of remarkably strong labor #markets, particularly when upward revisions and a longer-term view are considered.
Yet, long-term interest rates will react to “the #shark closest to the boat,” which at this point is higher #wages, as this has historically transmitted into significantly higher inflation over time.
But while wage gains are decent today, we think they’re less likely to result in much higher #inflation, unless corporate pricing power shifts meaningfully higher. That’s partly because more of those #wages are likely to be saved, and also due to secular headwinds to inflation.
In times of such tight labor markets, #educational advantages can prove to be an important differentiator amongst applicants (and can lead to stronger #wages), so many of the young who pursue educational opportunity today may find it works greatly to their advantage.
As such, I want to give a shout out to the amazing #teachers at North Star Academy, in Newark. You are inspiring students and changing lives every day. Thank you! #worldteachersday @Uncommon_Newark
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