While there have been signs of a softening labor market for months, the most recent jobs report confirmed the heyday of the post-pandemic boom is over.
Unemployment rose unexpectedly in the July jobs report released Aug. 2, and fewer jobs than anticipated were added. Economists knew the frenzied pace of adding jobs in 2021 and 2022 wasn’t sustainable, but there has been uncertainty about what getting back to “normal” would look like, Business Insider reports.
Now that it is clear the labor market’s momentum is headed in the wrong direction, experts are wondering what stopgaps can be put into place before things get worse. Cutting interest rates, which the Fed decided to hold steady just days before the July jobs report came out, is one way to reverse the job-market trends.
It’s not time to panic yet, as there is more data to come between now and when the Fed meets again in September, but it is something to stay ahead of before it’s too late.
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