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Sharp U.S. Hiring Slowdown Signals Cooling Economy Ahead

• smileysteve 3y ago
  Same Article on MSN https://www.msn.com/en-us/money/markets/sharp-u-s-hiring-slowdown-signals-cooling-economy-ahead/ar-AA1jiC1o https://www.msn.com/en-us/money/markets/sharp-u-s-hiring-slo...
• superduty 3y ago
  Precisely the intention of the rate hikes and other Fed actions. Winter is coming.
  • Racing0461 3y ago
    This brings up an interesting point. Why are people ok with the government being able to essentially control the unemployment rate. We might see the rate go from 3.5 to 4 and wave our hands in the air, but within that .5 are actual people/families being made homeless and/or unemployed as government policy. Should the government be able to control the interest/inflation rate (and by extention the unemployment rate) when housing/food isn't guaranteed? Seems like 1/2 of the social contract is being messed with.
    • dividedcomet 3y ago
      Because the government doesn’t? We’ve been raising interest rates for over a year without UE jumps, and the last two major spikes in UE weren’t caused by interest rates. Saying the government controls UE is like saying the government controls the tides.
      • Racing0461 3y ago
        It's basic keyseian economics. > Higher levels of unemployment might motivate the Fed to lower rates and spur economic growth, while low levels of unemployment might motivate higher rates to curb inflation. https://www.investopedia.com/articles/investing/103015/how-labor-force-participation-rate-affects-us-unemployment.asp#:~:text=Higher%20levels%20of%20unemployment%20might%20motivate%20the%20Fed%20to%20lower%20rates%20and%20spur%20economic%20growth%2C%20while%20low%20levels%20of%20unemployment%20might%20motivate%20higher%20rates%20to%20curb%20inflation https://www.investopedia.com/articles/investing/103015/how-l....
    • SkyPuncher 3y ago
      Because it’s necessary to avoid catastrophic outcomes. Politically, nobody wants to tank the economy on their watch. There’s absolutely no incentive for the government to maliciously raise rates. The intention is to avoid a situation where everything moves so fast that things spiral out of control. From my understanding, the only thing worse that a deflation is hyperinflation. People become completely unable to afford anything.
• __loam 3y ago
  My gut check here is this is basically what already happened in tech. I'm actually getting a lot of recruiting messages now but it really slowed down a few months ago. We've been hearing that the rest of the economy is still quite strong outside the tech bubble and even growing, with good wage growth generally. It's not too surprising that the rate increases are catching up to the rest of the economy. I suspect the fed will keep rates high until next year then bring things back a bit once inflation indicators have gone down. They're trying to ride the line here to keep inflation under control without destroying the economy.
  • shostack 3y ago
    Does this mean housing prices might go down if the cooling results in larger scale layoffs?
    • voakbasda 3y ago
      Only if the layoffs result in more displacement than the outstanding demand that drove up prices in the first place.