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Related: About this forumA 'catastrophe' is coming for the economy, but it's not recession or inflation, says Walsh
CNBC WORK
A catastrophe is coming for the economy, but its not recession or inflation, says Secretary of Labor Marty Walsh
PUBLISHED TUE, OCT 25 2022 1:31 PM EDT | UPDATED WED, OCT 26 2022 5:17 AM EDT
Eric Rosenbaum
@ERPROSE
KEY POINTS
U.S. Secretary of Labor Marty Walsh said in an interview at the CNBC Work Summit that he does not expect mass layoffs and job growth should continue into next year.
But Walsh said that immigration reform, supported by every business owner he talks to, will be critical to the national workforce and without it, a bigger catastrophe than a recession or inflation is coming.
Walsh also offered views on a federal minimum wage increase, federal childcare support and gig worker rules reform seen as targeting Uber and Lyft.
There has been a lot of talk about looming layoffs, and by some recent surveying, as many as half of large employers are thinking about labor cost cuts as the economy slows. But U.S. Department of Labor Secretary Marty Walsh doesnt see the recent job gains reversing, according to an interview at CNBCs Work Summit on Tuesday.
I still think that were going to have job gains as we move into the end of this year, early next year. A lot of people are still looking at different jobs, he told CNBCs Kayla Tausche at the virtual event. We saw a lot of moving around over this last course of the year. People leaving jobs, getting better jobs, and Im not convinced yet that were headed towards that.
For the Federal Reserve, some level of higher unemployment is necessary to cool an economy that has been bedeviled by persistent inflation. Unemployment, at 3.5% now, went down in the last monthly nonfarm payrolls report. The Fed is targeting unemployment of 4.4% as a result of its policy and higher interest rates.
We definitely have to bring down inflationary pressures, Walsh said at the CNBC Work Summit, but he added that the way to do it isnt layoffs. ... A House inquiry released on Tuesday found that the 12 largest employers in the nation including Walmart and Disney laid off more than 100,000 workers in the most recent recession during the pandemic.
{snip}
A catastrophe is coming for the economy, but its not recession or inflation, says Secretary of Labor Marty Walsh
PUBLISHED TUE, OCT 25 2022 1:31 PM EDT | UPDATED WED, OCT 26 2022 5:17 AM EDT
Eric Rosenbaum
@ERPROSE
KEY POINTS
U.S. Secretary of Labor Marty Walsh said in an interview at the CNBC Work Summit that he does not expect mass layoffs and job growth should continue into next year.
But Walsh said that immigration reform, supported by every business owner he talks to, will be critical to the national workforce and without it, a bigger catastrophe than a recession or inflation is coming.
Walsh also offered views on a federal minimum wage increase, federal childcare support and gig worker rules reform seen as targeting Uber and Lyft.
There has been a lot of talk about looming layoffs, and by some recent surveying, as many as half of large employers are thinking about labor cost cuts as the economy slows. But U.S. Department of Labor Secretary Marty Walsh doesnt see the recent job gains reversing, according to an interview at CNBCs Work Summit on Tuesday.
I still think that were going to have job gains as we move into the end of this year, early next year. A lot of people are still looking at different jobs, he told CNBCs Kayla Tausche at the virtual event. We saw a lot of moving around over this last course of the year. People leaving jobs, getting better jobs, and Im not convinced yet that were headed towards that.
For the Federal Reserve, some level of higher unemployment is necessary to cool an economy that has been bedeviled by persistent inflation. Unemployment, at 3.5% now, went down in the last monthly nonfarm payrolls report. The Fed is targeting unemployment of 4.4% as a result of its policy and higher interest rates.
We definitely have to bring down inflationary pressures, Walsh said at the CNBC Work Summit, but he added that the way to do it isnt layoffs. ... A House inquiry released on Tuesday found that the 12 largest employers in the nation including Walmart and Disney laid off more than 100,000 workers in the most recent recession during the pandemic.
{snip}
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A 'catastrophe' is coming for the economy, but it's not recession or inflation, says Walsh (Original Post)
mahatmakanejeeves
Oct 2022
OP
bucolic_frolic
(47,365 posts)1. Thoughts
I got a complimentary report from a major economist this week. He sees inflation at about 4% by early to mid-2023. And he intimated growth stocks would be back in favor over value stocks. That is quite a call.
An let's fess up to overspending to catch up with what was missed in the pandemic, and hoarding over inflation panic. Those will both decrease substantially. Workers will be saving by April. Saving will be the new mantra to build a brighter future.
LT Barclay
(2,762 posts)2. This line makes me sick...
"For the Federal Reserve, some level of higher unemployment is necessary to cool an economy that has been bedeviled by persistent inflation."
So some families have to suffer for the "good of the economy"? Buffalo Bagels, etc.