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The labor market is still hot — for now. Here’s what to consider before switching jobs

By | Lorie Konish |

  • Today, there are two open job listings for every unemployed person in the country, a “pretty remarkable ratio,” according to one expert.
  • In the first eight months of the year, employers have announced plans to cut the lowest recorded jobs in decades, according to one research firm.
  • But there is a caveat you may want to think about before making a move, particularly if the labor market cools.

It’s still an employees’ market, even amid high inflation and talk of a possible recession.

But there are some signs that could start to change.

One key reason: The Federal Reserve’s 0.75 percentage point interest rate increase announced on Wednesday likely won’t be its last as it moves to tamp down historic high inflation.

That could lead to “some softening of labor market conditions,” Federal Reserve chair Jerome Powell acknowledged on Wednesday.

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Record high job openings, which totaled 11.2 million in July, may “come down significantly,” he said. The rate increases may push up unemployment, which stands at 3.7%, according to the latest jobs report.

Recent research from Challenger, Gray & Christmas found layoffs are at record lows as the labor market stays strong.

In the first eight months of the year, employers have announced plans to cut 179,506 jobs, the lowest recorded total since Challenger began tracking those job cuts in 1993.

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