Pandemic Job boom Has Ended

New York, NY, September 22, 2023-"The pandemic-driven hiring frenzy is ending,” reports the Wall Street Journal.

“For months after the end of Covid-19 restrictions, employers faced widespread labor shortages as the economy quickly rebounded. Businesses tried to lure workers with bigger wages and signing bonuses. Help-wanted signs lined main streets.

“Now, companies are hiring more slowly and reducing job postings as higher interest rates weigh on economic demand. More workers, including women, immigrants and Americans with disabilities, are flowing into the labor force, helping businesses fill open roles. 

“Some economists think the labor-market cool-down points to a so-called soft landing, in which inflation falls without the economy entering a recession. Rising labor-force participation should help cool wage growth-and in turn take pressure off the Federal Reserve to raise interest rates further to reduce inflation by slowing the economy. 

“The job market-and overall economy-could still weaken significantly before inflation reaches the Fed’s target of 2%. But as hiring cools and inflation eases, chances are rising that the economy might dodge such a severe downturn.”