The economy has set off emergency sirens this year over growing recession fears, sky-high inflation and a battered stock market. But one area has allayed worries: jobs.
Hiring last month exceeded expectations and defied warnings of a downturn. Moreover, in November, wages grew a blistering 5.1% compared to a year earlier, offering welcome relief for workers strained by price hikes.
But the hiring boom could help send the economy into a prolonged downturn, turning the good jobs news into a grim omen, economists told ABC News.
“It’s confusing for people and rightfully so,” Betsey Stevenson, a professor of public policy and economics at the University of Michigan, told ABC News. “How can a lot of jobs be bad for the economy?”
A tight job market fuels rising wages, which often push companies to raise prices to make up for the added costs. In turn, inflation worsens and recession risks rise, they added.
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Article URL : https://abcnews.go.com/Business/jobs-boom-worsen-inflation-trigger-recession/story?id=94769664