US job market in 'bad shape,' executive recruiter says

foxbusiness.com:

Former Trump administration economist Stephen Moore analyzes what it means for the macroeconomy if job growth was significantly overestimated.

Economists largely agree that the labor market is «cooling,» but one recruiting industry veteran says that is a significant understatement.

Brian Howard is the founder and president of the Howard Group, a boutique search firm located in Overland Park, Kansas, that has been in business for more than 30 years, which companies hire to recruit candidates in an array of white-collar positions. 

He said the job market is in «bad shape.»

Longtime executive recruiter Brian Howard says the job market is flashing troubling signs in his industry. (Joe Raedle/Getty Images / Getty Images)

Howard told FOX Business in an interview that he noticed signs of weakening about two years ago that became evident roughly 18 months ago, and he said the market has been slow to poor for the last 10 to 12 months.

PRIVATE SECTOR JOB GROWTH COOLS TO 99,000 IN AUGUST, WELL BELOW ESTIMATE: ADP

Hiring for tech management and sales has virtually dried up, he said, and while that sector tends to be boom-and-bust, recruiting for insurance – more of an «ebb and flow» industry – is now in a «sad state of affairs,» too.

Howard has noticed a trend of more white-collar workers accepting independent contractor or 1099 positions out of necessity and companies opting to fill temporary rather than permanent positions.

He said the recruiting industry in 2024 is starting to feel like it was in 2009 after the financial crisis, when there was anecdotal evidence that somewhere around half of outside recruiting firms went out of business.

Former Home Depot CEO and Chair Bob Nardelli discusses U.S. jobs numbers, arguing the job