March 2022 Jobs Report, JOLTS, 401(k) Accounts, Yield Curve Inversion, and Harrison Johnson, CFP®: Financing with Higher Interest Rates

Smart Investing with Brent & Chase Wilsey

March 2022 Jobs Report

To no surprise the job recoupment continued in the month of March as non-farm payrolls grew by 431,000. This did miss the estimate of 490,000, but the previous two months saw revisions total a gain of 95,000 which more than offset the miss.

Job Openings and Labor Turnover Survey (JOLTS)

The Job Openings and Labor Turnover Survey (JOLTS) continues to post elevated numbers. In the month of February there were 11.27 million job openings which compares to the total number of people counted as unemployed at 6.27 million. This now means that there is a record 5 million more openings than people that are unemployed!

Previous 401(k) Accounts

With the level of quits we have seen in the JOLTs report many are deeming this era of time as the Great Resignation or the Great Reshuffle as employees are changing companies at an elevated rate. One item to be cognizant of if you have changed jobs is your 401k at that old employer. As of last year, it is estimated Americans had about $1.35 trillion in old employer 401(k) plans.

Yield Curve Inversion

People are now worried about the yield curve inversion. This is when shorter term bonds offer higher yields compared to longer term bonds. While this has been a reliable indicator of recession in the past, it by no means is something to panic over.

Harrison Johnson, CFP®: Financing with Higher Interest Rates