A Cooler Jobs Market Is Just What This Economy Needs
Labor demand is poised to ease, which will help the Federal Reserve tame inflation with less risk of triggering a recession.
Unemployment can remain low even if job growth slows.
Photographer: Frederic J. Brown/AFP
The U.S. has been creating more than 400,000 jobs every month for a year now, but we should expect that pace to start slowing, probably beginning this quarter. And while normally a slowdown in job creation would be seen as an ominous sign for the economy, with the Federal Reserve so focused on fighting high inflation it’s arguably good news for workers and policy makers alike.
Sustaining this economic expansion requires an environment that’s beneficial to workers while still being acceptable to the Fed, and a tap on the brakes would help us achieve that.