With the Bureau of Labor Statistics due to release its Job Openings and Labor Turnover report for July 2023 on Tuesday, August 29th, the US Federal Reserve does not seem to be optimistic about the economy’s progress, as well as its ongoing fight against inflation.
America’s job market has successfully weathered the economic issues of the past two years, an important point to consider in light of the rising cost of living; and people remain able to deal with price increases in terms of rent and basic necessities. However, this runs counter to the Fed’s hope of cooling the economy down to keep inflation within a manageable range.
No Recession, But…
Fed Chair Jerome Powell stated on Friday, August 25th, that yanking inflation down to a more manageable 2% will call for adjustments within the labor market. However, according to American Staffing Association CEO Richard Wahlquist, this is a tall order given the continued resilience of the US job market.
Still, Wahlquist pointed out that both the pace of job creation and trends regarding employers’ demand for temporary, contractual, full-time, and even flexible jobs has slowed considerably over the past couple of months.
Also, while the Fed no longer expects a recession, a number of companies from diverse industries are experiencing what is essentially seen as a rolling recession as they are feeling the impact of the ongoing economic downturn. Wahlquist pointed out evidence in the form of layoffs, particularly within the tech sector, throughout the last quarter of 2022 and the first quarter of this year.
But he also remarked that some chief executives feel that the US has turned the corner and things are bound to improve, especially where employment is concerned. Many expect an increase in job opportunities come the third and fourth quarters of this year, and this will run well into the first few months of 2024.