CITI: Keep An Eye On This Jobs Chart Because It Could Get Ugly
Now that the government shutdown is over, we'll get the Job Openings and Labor Turnover Survey (JOLTS) report on Wednesday.
JOLTS - one of Fed chair nominee Janet Yellen's favorite reports - tracks job openings, hires, quits, and other labor market indicators.
And as Citi's Tom Fitzpatrick told King World News, everyone should keep an eye on the job openings chart, which "looks to be breaking out of the uptrend in a similar fashion to the summer of 2007." Fitzpatrick goes on:
A lot of jobs that are being created are in service and leisure/hospitality industry (generally low paying) and part time jobs. So overall there is a very strong argument that the qualitative nature of job creation is very poor ... If we then add to this the fact that the dysfunctional environment in Washington is likely to continue to be a drag on confidence and the economy as we likely re-live the recent debacle again in 3-4 months' time...
Here's the chart:
