CEOs Indicate Decrease in Hiring as U.S. Job Market Slows

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Survey of Business Roundtable CEOs Shows Slowing Job Market and Economic Confidence

The latest survey results from the Business Roundtable are painting a concerning picture for the future of America’s job market. According to the data shared with Axios, the slowdown in hiring plans at some of the nation’s biggest corporations may continue in the coming months.

The survey of 145 top business leaders revealed a dip in CEO confidence, with the index tracking CEO confidence falling 5 points in the third quarter to 79. This drop below the historical average for the first time this year is attributed to a smaller share of executives planning to increase headcount.

“This is the second consecutive quarter in which CEOs have reported they are moderating their hiring plans,” said Joshua Bolten, CEO of the Business Roundtable. While fewer than 30% of executives plan to decrease hiring, the survey results align with the Federal Reserve’s perspective on a softening economy.

The survey also showed that 37% of CEOs anticipate no change to employment in the next six months, while 34% expect headcount to increase during that time period. However, the sentiment reflected in the survey matches the developments in the labor market, with demand for staff slowing and workers finding it harder to secure jobs.

As more CEOs anticipate a slowdown in sales in the months ahead, their hiring plans are being influenced. The sales sub-index dropped 13 points, indicating that executives expect moderating demand for their goods or services as the economy cools.

While CEO expectations do not point to a recession, they do confirm concerns about the labor market that have prompted the Federal Reserve to cut interest rates. The index tracking plans for capital investment, however, edged up slightly, with a majority of CEOs indicating they plan to maintain or increase capex in the near term.

Overall, the survey results highlight the challenges facing the job market and the broader economy, as businesses navigate uncertainties and adjust their hiring and investment plans accordingly.