Fed's Efforts to Cool Job Market Starting to Show Results

Source: New York Times

The labor market was always bound to cool off eventually. Almost no one thought that furious hiring pace was sustainable long-term. Now, the cool-down is clearly underway. Hiring is slowing. Job openings are falling. Fewer people are jumping ship to other employers.

Ordinarily, economists think of faster job growth as better. But the situation right now is more complicated. As my colleague German Lopez explained in this newsletter last week, the Fed has concluded that the job market is overheated and that the only way to bring down inflation is to cool it off. The question is how much pain it has to cause to get there.