Posted 3/12/2024, 6:25:00 PM
Economists Foresee Surge in Layoffs by 2025 as Rates Rise
- Economists predict a surge in layoffs by end of 2024 as higher interest rates hit debt-heavy firms
- Unemployment could rise to 5% by year-end and 10-15% by 2025 per some forecasts
- Job growth has been in part-time roles and wage growth is slowing, signs of a weakening labor market
- Higher rates strain corporate balance sheets, likely prompting restructuring and layoffs
- Layoff announcements already at highest levels since 2009; 60% of states at recessionary unemployment levels