‘Fodder for a recession’: Economist Mark Zandi warns about Americans ‘living on the financial edge’
Fortune••business
Key Points:
- Economist Mark Zandi warns that rising layoffs and stalled hiring point toward an imminent jobs recession, especially as vulnerable workers face increasing unemployment.
- Official government data confirms a slowdown in job openings and hiring, with private reports showing small businesses cutting jobs significantly, while larger firms continue hiring.
- Layoff announcements have surged to levels not seen since the pandemic and Great Recession, indicating that widespread job cuts may be forthcoming despite currently low unemployment claims.
- Structural pressures, including rising costs for small businesses, tighter labor supply in key industries, and early impacts of AI on entry-level tech jobs, are contributing to a weakening labor market.
- The Federal Reserve faces a divided decision on interest rate cuts amid this environment, balancing concerns over rising unemployment
