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Home > On The Market > 88: Entering a "New Era" of Higher Prices, Interest Rates, and Employment
Podcast: On The Market
Episode:

88: Entering a "New Era" of Higher Prices, Interest Rates, and Employment

Category: Business
Duration: 00:29:10
Publish Date: 2023-03-20 06:00:00
Description:

Unemployment was supposed to be much higher by now. With the Federal Reserve increasing its rate hikes over 2022 and into 2023, the labor market should have cracked already. But it hasn’t, and many mainstream investors have struggled to determine why. With a higher cost of capital, businesses should be more selective with who they’re hiring and keeping, but instead, we’re seeing the labor market have much more power than they’ve had in the past. So, did we successfully dodge an employment crisis, or is a rude awakening coming our way?

Joe Brusuelas, principal and chief economist for RSM US LLP, knows that we’re thinking about unemployment all wrong. As a leading economist with over twenty years of experience, Joe has seen multiple recessions, crashes, and unemployment crises. He knows exactly what it would take to make the labor market snap and push the country into a recession. Joe breaks down precisely what the Federal Reserve has been planning, when its interest rate hikes will finally take effect, and what the future of the labor market looks like.

He also touches on how we may be entering an entirely different era of the economy, one with tight employment, higher interest rates, and higher inflation than we’ve been used to. This directly affects almost every consumer in America, and investors can get ahead of the economy by knowing when this unemployment scale will finally balance. So don’t sit on the sidelines and be surprised when these economic forces take shape. Tune in!

In This Episode We Cover

Why unemployment has been so low and when the Fed’s interest rate hikes will kick in

How employment is calculated and why qualified workers are so hard to find 

Labor hoarding” and the real reason big tech is so easily laying off workers 

Unemployment rate predictions and whether it’ll be like the last recession 

Entering a new era of the economy and why higher inflation, interest rates, and employment could be in our future 

US immigration and how restricting foreign worker flow has caused a “tight” labor market 

And So Much More!

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How the Unemployment Rate Affects Us All (Yes, Even the Employed)

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Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-88

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