Right person, right job, right time

06 Feb 2025 2 min read

Daily update

New US Attorney General Bondi issued a flurry of memos, allegedly including a request to investigate companies pursuing diverse and inclusive workforces. That is economically significant. At a time of rapid structural change, companies need to employ the right person in the right job at the right time to maximize technological gains, with diverse views to spot the opportunities of rapid change. Undermining that risks damaging trend economic growth and profitability.
The Bank of England rate decision is seen as a cut by 53 out of 53 surveyed economists. With lots of UK prices falling, the BoE should attempt to anticipate future inflation trends, but analysis is hampered by a lack of reliable labor market data. UK non-food retail sales were very strong at the end of 2024, however.
German December factory orders numbers are not a focus despite concerns about the manufacturing sector. In 2024, there were sizable revisions to these figures, with positive revisions about two thirds of the time.
US 4Q productivity and unit labor cost data is important, but not reliable in real time. Automation and technology should increase productivity over time, as will social trends. Every time someone shops online, they are working (unpaid) for the retailer, increasing the productivity of (paid) workers.