Canopy Growth stock tumbles after announcing $200 million share sale plan
President Donald Trump’s immigration policies are starting to weigh on the US labor market.
The recently released NFP numbers caught many by surprise: after revisions, the US is now adding only 35,000 jobs/month over the last 3 months.
That’s a very slow pace for such a large economy.
But people forget the labor market is about demand and supply.
The unemployment rate isn’t moving high very fast because even if the demand for labor is super weak, the supply of labor has been slaughtered by Trump’s immigration policies.
The chart below is worth a thousand words.
The remittances from Mexican workers have collapsed both in number of transactions and volume.
As the housing market slows down, foreign-born construction workers are less in demand and immigration policies shrink the availability of foreign workers.
The demand for labor is very low, but so is the supply.
The Fed says this is still a balanced labor market, but it looks rather fragile.
What do you think?
***
This article was originally published on The Macro (BCBA:BMAm) Compass. Come join this vibrant community of macro investors, asset allocators and hedge funds - check out which subscription tier suits you the most using this link.