Philadelphia Fed reports worsening US labor market

The Federal Reserve Bank of Philadelphia data shows that the state of the US labor market is deteriorating. The share of American employees moving directly from one job to another without a temporary period of unemployment has fallen down to a 4-year low. According to Bloomberg, these numbers have been declining for two and a half years. They are now close to the level seen in 2021, when the country's economy was struggling with the consequences of the COVID-19 pandemic.

Millions of Americans change jobs every month, based on the Philadelphia Fed's research. Employees who move directly from one employer to another are considered to be the most in demand. However, their share has long been declining. Most people experience a period of unemployment when switching jobs, Bloomberg commented.

Atlanta Fed officials also managed to capture some interesting wage dynamics across the country. Wage growth for those who stay at the same workplace has become higher than for those who change jobs. Previously, the trend used to be the opposite, Bloomberg reported.