{"id":10298,"date":"2022-08-27T12:24:12","date_gmt":"2022-08-27T06:54:12","guid":{"rendered":"https:\/\/polscienceweb.com\/?post_type=portfolio&#038;p=10298"},"modified":"2022-08-27T12:24:28","modified_gmt":"2022-08-27T06:54:28","slug":"us-jobs-recession-paradox","status":"publish","type":"portfolio","link":"https:\/\/polscienceweb.com\/index.php\/portfolio\/us-jobs-recession-paradox\/","title":{"rendered":"US jobs-recession paradox"},"content":{"rendered":"\n<h4 class=\"has-text-align-center wp-block-heading\"><strong>Explanation\u00a0<\/strong><\/h4>\n\n\n<div class=\"has-text-align-center wp-block-post-date\"><time datetime=\"2022-08-27T12:24:12+05:30\">27th August 2022<\/time><\/div>\n\n\n<div style=\"height:16px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<details class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\">\n<summary class=\"wo-block-verse\" style=\"font-size: 18.5px; text-align: center;\">Read more<br><br><\/summary>\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\"\n>Normally, when the US Fed (central bank) raises interest rates to control inflation, it raises the fear of a recession because consumption and demand fall (people have less money), resulting in an increase in unemployment. But, this time, the&nbsp;<strong>US economy is creating jobs<\/strong>&nbsp;even as the Fed is hiking rates.<\/p>\n\n\n\n<div style=\"height:11px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why the recent Trend:<\/strong><\/h2>\n\n\n\n<div style=\"height:14px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\">Economic output in the United States is contracting in tandem with the Fed&#8217;s rate hikes. However, companies continue to hire in large numbers.<\/p>\n\n\n\n<ul class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\"><li><strong>Over the last six months<\/strong>, nearly half a million new jobs have been created in the United States.<\/li><li><strong>Lowest unemployment rate<\/strong>: 3.5%; the unemployment rate in the United States has been the lowest since 1970.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\"><strong>The following is the reason for the labor market paradox:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\">In comparison, the previous crises (pandemic-induced 2020 recession, financial crisis of 2007-08, and dot-com bust of 2000-01) were all caused by excessive debt-related buildup in housing and Internet infrastructure, and it took the economy nearly a decade to absorb them. Excess liquidity, rather than debt, is the most likely catalyst for a recession trend today. And so the economy is able to bounce back with more job creation.<\/p>\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\">If US interest rates rise faster than expected, foreign investors will flee emerging markets and invest more in the US (greater interest rate). It results in the depreciation of the local currency.<\/p>\n\n\n\n<\/details>\n\n\n\n<div style=\"height:16px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-text-align-center\">Source: <a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-global\/explained-us-jobs-recession-paradox-gdp-fed-reserve-8103762\/\" target=\"_blank\" rel=\"noreferrer noopener\">IE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Explanation\u00a0 Normally, when the US Fed (central bank) raises interest rates to control inflation, it&hellip;<\/p>\n","protected":false},"author":1,"featured_media":10297,"comment_status":"closed","ping_status":"closed","template":"","portfolio-category":[428,447,426],"class_list":["post-10298","portfolio","type-portfolio","status-publish","has-post-thumbnail","hentry","portfolio-category-428","portfolio-category-august-2022","portfolio-category-newsfeed"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>US jobs-recession paradox - Politics Science News<\/title>\n<meta name=\"description\" content=\"Normally, when the US Fed (central bank) raises interest rates to control inflation, it raises the fear of a recession because consumption\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/polscienceweb.com\/index.php\/portfolio\/us-jobs-recession-paradox\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US jobs-recession paradox - Politics Science News\" \/>\n<meta property=\"og:description\" content=\"Normally, when the US Fed (central bank) raises interest rates to control inflation, it raises the fear of a recession because consumption\" \/>\n<meta property=\"og:url\" content=\"https:\/\/polscienceweb.com\/index.php\/portfolio\/us-jobs-recession-paradox\/\" \/>\n<meta property=\"og:site_name\" content=\"Politics Science News\" \/>\n<meta property=\"article:modified_time\" content=\"2022-08-27T06:54:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/polscienceweb.com\/wp-content\/uploads\/2022\/08\/PARADOX.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/polscienceweb.com\\\/index.php\\\/portfolio\\\/us-jobs-recession-paradox\\\/\",\"url\":\"https:\\\/\\\/polscienceweb.com\\\/index.php\\\/portfolio\\\/us-jobs-recession-paradox\\\/\",\"name\":\"US jobs-recession paradox - Politics Science News\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/polscienceweb.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/polscienceweb.com\\\/index.php\\\/portfolio\\\/us-jobs-recession-paradox\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/polscienceweb.com\\\/index.php\\\/portfolio\\\/us-jobs-recession-paradox\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/polscienceweb.com\\\/wp-content\\\/uploads\\\/2022\\\/08\\\/PARADOX.jpg\",\"datePublished\":\"2022-08-27T06:54:12+00:00\",\"dateModified\":\"2022-08-27T06:54:28+00:00\",\"description\":\"Normally, when the US Fed (central bank) raises interest rates to control inflation, it raises the fear of a recession because consumption\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/polscienceweb.com\\\/index.php\\\/portfolio\\\/us-jobs-recession-paradox\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/polscienceweb.com\\\/index.php\\\/portfolio\\\/us-jobs-recession-paradox\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/polscienceweb.com\\\/index.php\\\/portfolio\\\/us-jobs-recession-paradox\\\/#primaryimage\",\"url\":\"https:\\\/\\\/polscienceweb.com\\\/wp-content\\\/uploads\\\/2022\\\/08\\\/PARADOX.jpg\",\"contentUrl\":\"https:\\\/\\\/polscienceweb.com\\\/wp-content\\\/uploads\\\/2022\\\/08\\\/PARADOX.jpg\",\"width\":800,\"height\":400,\"caption\":\"PARADOX\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/polscienceweb.com\\\/index.php\\\/portfolio\\\/us-jobs-recession-paradox\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/polscienceweb.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Portfolio\",\"item\":\"https:\\\/\\\/polscienceweb.com\\\/index.php\\\/portfolio\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"US jobs-recession paradox\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/polscienceweb.com\\\/#website\",\"url\":\"https:\\\/\\\/polscienceweb.com\\\/\",\"name\":\"Politics Science News\",\"description\":\"Latest Articles\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/polscienceweb.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"US jobs-recession paradox - Politics Science News","description":"Normally, when the US Fed (central bank) raises interest rates to control inflation, it raises the fear of a recession because consumption","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/polscienceweb.com\/index.php\/portfolio\/us-jobs-recession-paradox\/","og_locale":"en_US","og_type":"article","og_title":"US jobs-recession paradox - Politics Science News","og_description":"Normally, when the US Fed (central bank) raises interest rates to control inflation, it raises the fear of a recession because consumption","og_url":"https:\/\/polscienceweb.com\/index.php\/portfolio\/us-jobs-recession-paradox\/","og_site_name":"Politics Science News","article_modified_time":"2022-08-27T06:54:28+00:00","og_image":[{"width":800,"height":400,"url":"https:\/\/polscienceweb.com\/wp-content\/uploads\/2022\/08\/PARADOX.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/polscienceweb.com\/index.php\/portfolio\/us-jobs-recession-paradox\/","url":"https:\/\/polscienceweb.com\/index.php\/portfolio\/us-jobs-recession-paradox\/","name":"US jobs-recession paradox - Politics Science News","isPartOf":{"@id":"https:\/\/polscienceweb.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/polscienceweb.com\/index.php\/portfolio\/us-jobs-recession-paradox\/#primaryimage"},"image":{"@id":"https:\/\/polscienceweb.com\/index.php\/portfolio\/us-jobs-recession-paradox\/#primaryimage"},"thumbnailUrl":"https:\/\/polscienceweb.com\/wp-content\/uploads\/2022\/08\/PARADOX.jpg","datePublished":"2022-08-27T06:54:12+00:00","dateModified":"2022-08-27T06:54:28+00:00","description":"Normally, when the US Fed (central bank) raises interest rates to control inflation, it raises the fear of a recession because consumption","breadcrumb":{"@id":"https:\/\/polscienceweb.com\/index.php\/portfolio\/us-jobs-recession-paradox\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/polscienceweb.com\/index.php\/portfolio\/us-jobs-recession-paradox\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/polscienceweb.com\/index.php\/portfolio\/us-jobs-recession-paradox\/#primaryimage","url":"https:\/\/polscienceweb.com\/wp-content\/uploads\/2022\/08\/PARADOX.jpg","contentUrl":"https:\/\/polscienceweb.com\/wp-content\/uploads\/2022\/08\/PARADOX.jpg","width":800,"height":400,"caption":"PARADOX"},{"@type":"BreadcrumbList","@id":"https:\/\/polscienceweb.com\/index.php\/portfolio\/us-jobs-recession-paradox\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/polscienceweb.com\/"},{"@type":"ListItem","position":2,"name":"Portfolio","item":"https:\/\/polscienceweb.com\/index.php\/portfolio\/"},{"@type":"ListItem","position":3,"name":"US jobs-recession paradox"}]},{"@type":"WebSite","@id":"https:\/\/polscienceweb.com\/#website","url":"https:\/\/polscienceweb.com\/","name":"Politics Science News","description":"Latest Articles","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/polscienceweb.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/polscienceweb.com\/index.php\/wp-json\/wp\/v2\/portfolio\/10298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/polscienceweb.com\/index.php\/wp-json\/wp\/v2\/portfolio"}],"about":[{"href":"https:\/\/polscienceweb.com\/index.php\/wp-json\/wp\/v2\/types\/portfolio"}],"author":[{"embeddable":true,"href":"https:\/\/polscienceweb.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/polscienceweb.com\/index.php\/wp-json\/wp\/v2\/comments?post=10298"}],"version-history":[{"count":4,"href":"https:\/\/polscienceweb.com\/index.php\/wp-json\/wp\/v2\/portfolio\/10298\/revisions"}],"predecessor-version":[{"id":10302,"href":"https:\/\/polscienceweb.com\/index.php\/wp-json\/wp\/v2\/portfolio\/10298\/revisions\/10302"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/polscienceweb.com\/index.php\/wp-json\/wp\/v2\/media\/10297"}],"wp:attachment":[{"href":"https:\/\/polscienceweb.com\/index.php\/wp-json\/wp\/v2\/media?parent=10298"}],"wp:term":[{"taxonomy":"portfolio-category","embeddable":true,"href":"https:\/\/polscienceweb.com\/index.php\/wp-json\/wp\/v2\/portfolio-category?post=10298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}