Inflation and the Future job market
Updated: Sep 27, 2022
Written by: Brendan Zalenski
September 26th, 2022
The Federal Reserve recently discussed the measures that would need to be taken in order to combat the growing inflation problems. One such issue that was discussed was the potential loss in jobs that would occur over the next year. According to Alicia Wallace, writer at CNN, stated "the central bank is expecting the nation’s unemployment rate to grow to 4.4% next year – up from August’s 3.7% — and potentially as high as 5%. Assuming no change in the labor force, that would mean around 1.2 million more people will be unemployed. At the high end of the Fed’s range, at 5%, that would be 2.2 million more unemployed" (Wallace 2).
This news concerns many as the country is continuing its return to normality after facing COVID for two years. With many people reluctant to return to work, these unemployment difficulties will only get worse. In addition I feel that the recent supply chain problems along with these future unemployment numbers will further strain the problems that everyday middle and lower class families face.
In conclusion, I feel that the government needs to find another possible way of reducing inflation. The average American has face numerous hardships the past few years and an alternative needs to be explored in order to find a solution that is mutually beneficial.
Information source - https://www.cnn.com/2022/09/23/economy/powell-fed-labor-market/index.html
Image source - https://manage.wix.com/dashboard/09c308c0-0127-4602-965f-b88184595c27/blog/9ae335a9-1a34-4756-b189-245df171a8d5/edit?referralInfo=sidebar