Federal Reserve expects unemployment to rise

Job Fait Job seekers visit booths during the Spring Job Fair at the Las Vegas Convention Center Friday, April 15, 2022. ((K.M. Cannon/Las Vegas Review-Journal) / Getty Images)

Revelations 18:23:’For the merchants were the great men of the earth; for by thy sorceries were all nations deceived.’

Important Takeaways:

  • More US companies brace for job cuts amid likely recession, survey shows
  • A new survey published on Monday by the National Association for Business Economics, which shows that about 20% of the group’s members expect employment at their company to fall in the coming months.
  • Wage growth has been a big contributor to stubbornly high inflation, which remains about three times higher than the pre-pandemic average.
  • The results “indicate widespread concern about entering a recession this year,” Coronado said. More than half of respondents see the possibility of a recession over the next year at 50% or higher, the survey showed.
  • The economy added just 223,000 jobs in December, the smallest gain in two years, and there have been a number of high-profile tech layoffs over the past month.
  • Federal Reserve officials have made it clear that they expect unemployment to climb as a result of their aggressive interest rate hike campaign
  • That could mean more than 1 million Americans lose their jobs over the course of this year.

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