blog Market Intelligence /marketintelligence/en/news-insights/blog/insight-weekly-september-13-2022 content esgSubNav
In This List
Blog

Insight Weekly: Job growth faces hurdles; shale firms sit on cash pile; Africa's lithium future

Blog

Insight Weekly: Energy crisis cripples Europe; i-bank incomes rise; US holiday sales outlook

Blog

Japan M&A By the Numbers: Q3 2022

Blog

FIFA World Cup 2022: Advertising Revenue by the Numbers

Blog

Insight Weekly: Reviving nuclear power; 2023 outlook for US financials; PE funds fuel EV sector


Insight Weekly: Job growth faces hurdles; shale firms sit on cash pile; Africa's lithium future

Today is Tuesday, September 13, 2022, and here’s your weekly selection of essential intelligence on financial markets and the global economy from S&P Global Market Intelligence. Subscribe to be notified of each new Insight Weekly.

In this edition, we examine the state of the U.S. labor market. The unemployment rate rose to 3.7% in August from 3.5% in July as more people entered the workforce and job growth moderated. Most economists agree that the unemployment rate will rise by the end of 2022 as the Federal Reserve raises interest rates to tame soaring inflation. S&P Global's IHS Markit expects labor demand to weaken in the coming quarters as companies adjust their workforces in response to sluggish output growth. On the supply side, Market Intelligence forecasts a further decline in the labor force participation rate due to changing demographics after a short-term recovery.

High oil and natural gas prices have increased the cash flows of most U.S. shale producers, leaving many of these companies with hefty amounts of cash and with choices to make. The increase in cash balances could drive M&A activity, with analysts pointing to several recent deals in which drillers bought adjacent operators in the Permian Basin and the Haynesville and Marcellus shales.

Globally significant discoveries tantalizingly close to production highlight sub-Saharan Africa's potential to be a major lithium production hub. Zimbabwe, the Democratic Republic of Congo, Ghana, Namibia and Mali have a combined 4.38 million tonnes in lithium resources, ahead of critical minerals aspirants Canada and Germany, according to U.S. Geological Survey data. However, experts warn of vast infrastructure and sovereign risk challenges for projects and investments in the region.

The Big Number

Read full article

Trending

Chart, bar chart

Description automatically generated

—Read more on S&P Global Market Intelligence and follow @ericwolff on Twitter

Seek & Prosper

Essential Intelligence from S&P Global — a powerful combination of data, technology, and expertise — helps you push past the expected and renders the status quo obsolete. Because a better, more prosperous future is yours for the seeking. 

Learn more

Additional Insights from S&P Global Market Intelligence

Increase your competitive edge with essential insights delivered straight to your inbox. We offer complimentary newsletters on a wide variety of topics to help you stay on top of what’s moving the markets, separating the immaterial from the invaluable. Review our newsletters and sign up here.

IHS Markit is now part of S&P Global.
Written and compiled by Louis Bacani

Learn more about Market Intelligence
Request Demo