Job openings in the U.S. were recorded at 10.46M by the end of November. This number reduced only slightly from the October figure of 10.51M.
There are still 1.8 jobs available for every unemployed person. This number hit its peak at 2 full jobs per unemployed worker in the middle of last year.
This is happening as companies like Salesforce announce layoffs for 10% of its workforce. Amazon is further reducing its workforce by another 18K jobs in the next few months.
These latest moves mean that the Federal Reserve will have no choice but to continue increasing interest rates. They’ve already stated that the current Fed Funds rate of 4% to 4.25% will be further increased to a range between 5% and 5.5% in the coming months.
Let me leave you with this.
More than two-thirds of the economists at the 23 larger financial institutions that do business directly with the Federal Reserve are predicting that our economy will go into a recession sometime this year. Two others are predicting a recession in 2024.
The banks stated a number of reasons for their concerns inluding our citizens spending down their pandemic savings and the decline of the housing market.
In response, banks are already tightening their lending standards. I’ve written in the past that this would happen.
In every recession where I’ve operated businesses, it became impossibly difficult for entrepreneurs to get the lending they needed to operate their ongoing enterprises. Those who were able, ended up paying interest rates and points that made the lending unaffordable.
If you need to get loans renewed, or done I’d suggest you get to it now. Completing this task might become an impossibility in a year or two.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, M&A Due Diligence, Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
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