<p>The extent to which the Federal Reserve can avoid an economic recession largely depends on a peculiar phenomenon after the epidemic - labor hoarding - and how long it will last. Despite interest rates being at their highest level in over 20 years and signs of economic cooling, companies that experienced labor shortages during the epidemic have largely avoided layoffs. Instead, they have reduced their recruitment scale, decreased the number of vacant positions, and shortened working hours. However, recent data is worrisome, as employers may soon be approaching their limits, which could accelerate the pace of layoffs</p>

<p>The ability of the Federal Reserve to avoid an economic recession depends on the duration of the labor hoarding phenomenon. Despite signs of economic cooling, companies that experienced labor shortages during the pandemic have avoided layoffs. However, recent data indicates that employers may soon accelerate the pace of layoffs, causing concern</p>

American companies "hoard labor" to buy time for the Federal Reserve, but more companies are approaching the brink of layoffs