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Eric Basmajian observes that at the onset of the last three recessions, residential building payrolls declined approximately 8% to 12% from their peak levels.
Currently, payrolls in this sector have only fallen by 2.5%, which he describes as the most critical variable in the economy and suggests is the reason why the next key domino in the economic cycle has not yet fallen.
Basmajian has previously examined the performance of Leading Economic Indicators during the current cycle. Earlier this year, he also highlighted a surge in durable goods manufacturing driven by AI investment, reflected in U.S. GDP data as increased business equipment spending in a separate analysis. These observations provide context for his focus on payrolls as a critical economic metric.