No caveats needed: This is a rip-roaring labor market, in stark defiance of months of recession chatter — and the Federal Reserve’s efforts to slow things down. That is a precarious balance (more on how the Fed might react below), but it is a remarkable situation. The jobless recoveries of the early 2000s now look like ancient history.
The details: Economists expected jobs growth to decelerate, but instead it surged ahead, with an addition of more than half a million jobs (517,000) in January.
The unemployment rate hit an ultra-low 3.4%. To find a water mark lower than that, you’d have to go all the way back to 1953.
What we’re hearing from our customers:
Labor is a hot button issue that has only become more prominent since the start of the pandemic. High cost of labor, hiring challenges, and overall availability have impacted manufacturing operations at many of our clients. As a result, many have and continue to explore automation across all sectors. Some examples of automation projects we’ve recently financed:
- $2MM food processing and packaging for a middle-market producer of baked goods
- $11.2MM robotic warehouse automation for a subsidiary of an investment-grade retailer
- $6.1MM robotic assembly for a Tier 1 automotive supplier
Why it matters: American workers — outside of a handful of sectors — are experiencing some of the most plentiful opportunities in generations — even as inflation has been coming down.
The unemployment rate hit an ultra-low 3.4%. To find a water mark lower than that, you’d have to go all the way back to 1953.