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GSAM chart of the week. Fourth quarter results show pressure on margins, but the labor market could improve.

Fourth-quarter results provided some insight into pressures on corporate margins, but labor market commentary indicates some of those headwinds may be easing. The proportion of management teams citing labor shortages, which is now less than a third of the peak in the third quarter of 2021, indicates a slack in the job market. In our view, continued rebalancing between supply and demand will be needed to slow wage growth and inflation in general.

Share of leadership teams citing labor shortages at quarterly earnings conferences (%)

Source:  GS Data Works, GS Global Investment Research et GS Asset Management

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