TheVoiceOfJoyce While the EU and China may see slow growth, the US will be unaffected by Recession. The bad part of the IMF predictions, infers we’ll have a better labor market, pressure is up to increase wages and the Fed may continue raising rates. Given that are methodology for measuring unemployment is wrong, the Fed should not factor Labor into their inflationary model. Labor hasn’t had a wage and benefit raise for years. The US is woefully understaffed in most industries. Where are the managers in key industries? Don’t blame labor for inflation, blame corporate price gauging. The US is now undergoing an equity rebalance and should continue till labor is really meeting the fictional employment numbers stated. No need for the US to worry about labor inflation. Corporate greed has caused inflation and has contributed to labor’s woes by short staffing and inadequate benefits. This is changing as employees become aware of their plight and demand better pay and work conditions.

Posted on by jaslvr

www.theguardian.com/business/2023/jan/02/third-of-world-economy-to-hit-recession-in-2023-imf-head-warns

Meanwhile, Georgieva said, the US economy is standing apart and may avoid the outright contraction that is likely to afflict as much as a third of the world’s economies.

The “US is most resilient,” she said, and it “may avoid recession. We see the labour market remaining quite strong.”

“This is … a mixed blessing because if the labour market is very strong, the Fed may have to keep interest rates tighter for longer to bring inflation down,” Georgieva said.

The US job market will be a central focus for Federal Reserve officials who would like to see demand for labour slacken to help undercut price pressures. The first week of the new year brings a raft of key data on the employment front, including Friday’s monthly nonfarm payrolls report, which is expected to show the US economy minted another 200,000 jobs in December and the jobless rate remained at 3.7% – near the lowest since the 1960s.

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