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Opinion
Conor Sen

Job Market Is Heading for a Soft Landing of Its Own

More layoffs used to be considered a bad thing for the economy, but that was before a shortage of workers began adding to inflation.

Reading the jobs market signs.

Reading the jobs market signs.

Photographer: Alexander Nemenov/AFP via Getty Images

The Federal Reserve has talked a lot about its goal of a soft landing for the economy as it raises interest rates to fight inflation, but there hasn't been as much talk about what that would look like for workers.

Fed Chairman Jerome Powell has called the labor market “tight to an unhealthy level,” with demand outpacing supply. Restoring balance is going to require not just more people entering the labor market, but more “involuntary churn.” That means more workers being laid off, and, hopefully, a labor market that’s still strong enough to reabsorb them quickly.