As a result, there has been a narrowing of net profit margins -- calculated by deducting overhead cost ratios from the interest rates. 2  IMF, Global Financial Stability Report, April 2020.
Of course, several purely domestic factors could help to account for any shortfall, such as the aftereffects of the unusually sluggish recovery in job growth early in this expansion or a possible downward drift in the natural rate of unemployment. But it also is a pattern that would be consistent with downward pressures from an expansion in global labor supply.