Job Growth Cools While Recession Fears Persist Despite Tight Labor Market

Hiring and job openings in corporate America have cooled from record highs in 2022 as the Federal Reserve raises interest rates to fight inflation.

Economists predict further cooling of the labor market in 2023 which could lead to a mild, short recession, though a soft landing is also possible.

Consumer confidence and job gains ticked up at the end of 2022, but two-thirds still predict a likely recession in the next 12 months.

The labor market remains very tight in many sectors with more job openings than available workers.

Salary growth and consumer spending have stayed strong, meaning inflation could persist through 2024 if interest rates stay high.