, Columnist
‘Jobful Vibecession’ Will Keep Workers on the Payroll
Inflation will allow companies to cut labor costs without mass layoffs through stagnating wages while prices rise.
Recession vibes.
Illustration: Jessica Karl
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Recession fears are leading, naturally, to anxiety about job losses. How many people will be thrown out of work by an economic downturn? How high must unemployment go to curb inflation?
Laying off millions of workers is one way to rebalance the US labor market. But there’s another way — one that seems more likely in this inflationary economy and that’s far less traumatic for both workers and companies. We’re seeing it already: a labor market cool down happening through shrinking paychecks instead of job cuts.