Hiring has slowed, but joblessness remains at levels defying economic norms. Big policy changes under a new administration could test that resilience.According to The New York Times, hiring has slowed down, but unemployment rates remain at levels that defy economic norms. The resilience of the economy could be tested by big policy changes under a new administration.
Not too long ago, the main question on everyone’s mind was whether the U.S. economy would avoid a recession. However, this question now feels outdated and belongs to a previous era of economic narratives.
Despite a strong performance of keeping the unemployment rate below 4 percent for over two years, it has slightly increased since last spring and currently stands at 4.2 percent. The December reading will be released on Friday. While hiring has slowed down, layoffs are still relatively low compared to long-term standards.
Inflation, which was a major concern, has significantly calmed down. The Federal Reserve, which had been raising interest rates steeply in 2022 to combat inflation, has slightly lowered the key interest rate in the final months of 2024. This was done in an attempt to ease pressure on commercial activity and support employment.
Predictions of an economic downturn, which were once widespread, were mostly absent from the year-ahead forecasts sent out by major financial firms during the holiday season.
During a conference call, Jeremy Barnum, the chief financial officer at JPMorgan Chase, stated that people are looking for problems, but the reality is that there are none yet when asked about the state of the U.S. economy at the beginning of 2024.
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