Sharp U.S. Hiring Slowdown Signals Cooling Economy Ahead | Hacker News Reader

Sharp U.S. Hiring Slowdown Signals Cooling Economy Ahead

wsj.com

36 pointspretext9 comments

My gut check here is this is basically what already happened in tech. I'm actually getting a lot of recruiting messages now but it really slowed down a few months ago. We've been hearing that the rest of the economy is still quite strong outside the tech bubble and even growing, with good wage growth generally. It's not too surprising that the rate increases are catching up to the rest of the economy. I suspect the fed will keep rates high until next year then bring things back a bit once inflation indicators have gone down. They're trying to ride the line here to keep inflation under control without destroying the economy.

Does this mean housing prices might go down if the cooling results in larger scale layoffs?

Only if the layoffs result in more displacement than the outstanding demand that drove up prices in the first place.

Precisely the intention of the rate hikes and other Fed actions. Winter is coming.

This brings up an interesting point. Why are people ok with the government being able to essentially control the unemployment rate. We might see the rate go from 3.5 to 4 and wave our hands in the air, but within that .5 are actual people/families being made homeless and/or unemployed as government policy.

Should the government be able to control the interest/inflation rate (and by extention the unemployment rate) when housing/food isn't guaranteed? Seems like 1/2 of the social contract is being messed with.

Because the government doesn’t? We’ve been raising interest rates for over a year without UE jumps, and the last two major spikes in UE weren’t caused by interest rates. Saying the government controls UE is like saying the government controls the tides.

It's basic keyseian economics.

> Higher levels of unemployment might motivate the Fed to lower rates and spur economic growth, while low levels of unemployment might motivate higher rates to curb inflation.

https://www.investopedia.com/articles/investing/103015/how-l....

Because it’s necessary to avoid catastrophic outcomes.

Politically, nobody wants to tank the economy on their watch. There’s absolutely no incentive for the government to maliciously raise rates. The intention is to avoid a situation where everything moves so fast that things spiral out of control.

From my understanding, the only thing worse that a deflation is hyperinflation. People become completely unable to afford anything.

Same Article on MSN

https://www.msn.com/en-us/money/markets/sharp-u-s-hiring-slo...

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