Despite a robust March jobs report, market analysts assert that cracks are beginning to form in the labor market, warning that the banking turmoil may be a contributing factor to easing employment growth in the coming months.
Mike Fratantoni, the chief economist of the Mortgage Bankers Association (MBA), predicted in a research note that the unemployment rate will rise to about 5 percent this year.
He noted that the job market is “beginning to flag” several other “lagging indicators of a slowing economic activity and tightening credit” environment.
A wave of recent labor data might support this expectation.
For the week ending April 8, the number of Americans filing for unemployment benefits surged to 239,000, topping market estimates of 232,000, according to the Department of Labor….