The US Economy's Resilience Amid Recession Fears.
US businesses are engaging in "labor hoarding" by maintaining headcounts even as demand softens, according to recent job market data. Hiring has scaled back and layoffs have decreased as firms try to ride out any impending recession with what they have. CEO sentiment during the second quarter showed that executives' hiring plans diminished, net workforce reduction expectations nudged slightly higher, and those who expected little to no change in headcount became the largest camp. The overall labor market is showing more signs of slack, with continuing unemployment claims on an upward trend since last fall, suggesting spells of unemployment are becoming more lasting.
