A classic early sign of a commodity cycle.
Mining industry nonfarm payrolls near historical lows.
This happened in early 1970s & 2000s.
Both marked the onset of a commodities bull market.
Labor & capital constraints are the amplifiers of bull market in resource stocks.
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Energy & soft commodities are obviously not mining related.
See below the nonfarm payrolls for oil & gas extraction which is also at historical lows.
To recall:
The green agenda hasn’t even started.
The decline in agricultural workers look even more severe.
To be fair, this is not a domestic problem.
We’re are experiencing similar issues worldwide.
This pandemic has truly magnified a long-term trend of labor reduction and under investments in the commodities space.
Resource companies have been facing a deep recession for some time now with not enough workers willing to enter this industry.
On top of it:
Government policies seem to be discouraging folks from return to the labor market.
People continue to leave the labor force like never before.