Unemployment has been showing signs that the labor market may be slowing down and people are not hiring at the rate that they were two months ago. The unemployment has reached about 230,000 which is a 4,000 person increase from last week. All states but Tennessee have reported an increase in jobless claims since last week. With the Fed looking to steer the economy from a recession the biggest issue is how much is the Fed willing to increase the inflation rate.
The increase in jobless claims has not only affected the labor market but is making an impact on the manufacturing market due to factories not being able to keep up with demand for products causing a shortage in supplies across the country. The country is experiencing its fastest wage growth in nearly 50 years, with this wage growth and the amount of jobless people climbing more pressure has been added on the Fed to cool down prices.
Reading this article and comparing it to other ones that have been published recently a recession looks to be happening soon.
https://www.marketwatch.com/story/u-s-jobless-claims-climb-to-230-000-in-sign-labor-market-is-slowly-cooling-off-11670506623?mod=economy-politics
This is interesting. As someone who studied the unemployment rate, this lines up well with what I had forecasted, so it's interesting to see it actually unfold.
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