U.S. job market slows, but it’s not yet a ‘three-alarm fire,’ economist says
The U.S. job market is cooling at a worrisome rate but not to an extent that warrants panic — at least not yet, according to economists.
Their concern lies with the momentum of key labor-market metrics such as unemployment, job growth and hiring.
Such barometers, which were historically strong just a year or so ago, have gradually weakened as the Federal Reserve raised interest rates to cool the economy and bring down inflation.
More from Personal Finance:
Unemployment system unprepared for a recession
Working 10-to-4 is the new 9-to-5
Recession could upend retirement plans
A recession could result if the labor market keeps throttling back at its current pace, economists said.
“We’re still on this trajectory that’s not a three-alarm fire right now,” said Nick Bunker, economic research director for North America at the job site Indeed.
But if the decline doesn’t level off soon, he said, a soft landing for the economy may not be in the offing: “We’re going to land but it’s going to land with a crash.”