Strong job market defies forecasts of mass layoffs
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Forecasters predicted mass layoffs in 2023 that never materialized as consumer spending remained strong, encouraging hiring. This created a "virtuous circle".
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Economists expected interest rate hikes by the Federal Reserve to lead to job losses, but the labor market has remained resilient.
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The unemployment rate has only risen slightly to 3.7%, mostly due to more people looking for work, not layoffs.
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Demand for workers, while lower than last year, remains high with 1.3 jobs for every unemployed worker.
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Consumers still have money and willingness to spend, fueling opportunity for hiring. The labor market is expected to continue cooling gradually.