Part 6/10:
- Economic Slowdown: With less money circulating, economic activity is likely to slow down, possibly signaling the beginning of a recession.
Signs and Risks
While recent jobs reports have shown resilient employment figures—adding 200,000 jobs in November and lowering the unemployment rate to 3.7%—these numbers may not tell the full story. Multiple other indicators point toward economic stress:
Decline in Job Openings: A nearly 25% year-over-year decrease in job openings suggests fewer opportunities and potential tightening in the labor market.
Rise in Defaults and Bankruptcies: Default rates are expected to climb in 2024 as higher borrowing costs strain both consumers and businesses.