Part 6/12:
This delicate balance results in a labor market that appears stable externally but is internally characterized by declining supply and demand. The situation raises concerns about growing downside risks: a sudden deterioration could trigger rapid increases in layoffs and unemployment, especially if economic conditions worsen swiftly.
Slowing Economic Growth and Inflation Trends
GDP growth has decelerated to approximately 1.2% in the first half of the year—a stark contrast to the 2.5% growth rate observed in 2024. Much of this slowdown stems from reduced consumer spending, which itself reflects broader supply potential and demand constraints.