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Mark Zandi cautions against viewing the strong March payroll employment gain as a signal of robust job growth. He explains that the improvement comes after a significant decline in February, which was impacted by harsh winter weather and a labor strike at Kaiser Permanente.
Abstracting from the month-to-month fluctuations, Zandi notes that only a small number of jobs have been added recently.
Earlier this year, Zandi noted that Wall Street is increasingly concerned about rising recession risks in the U.S. economy. He has also highlighted growing stress among subprime borrowers, reporting that over 10% of subprime debt was delinquent as of February. These signals have contributed to caution about the strength of recent economic data.