We’re seeing high inflation, rising interest rates and slow economic growth but also a strong labor market. Employment doesn’t seem to be paying attention to the rest of the economy as job numbers remain strong. Rob talks about that with Jerry Bowyer.
Despite high inflation, rising interest rates and slow economic growth, the labor market remains seemingly strong. We’ll talk about that with Jerry Bowyer today.
Economist Jerry Bowyer is President of Bowyer Research and a MoneyWise contributor. He's the author of “The Maker Versus the Takers: What Jesus Really Said About Social Justice and Economics.” And you can read his insightful columns at the Christian Post.
On this program, Bowyer explains why the economy is still adding jobs and employers are still looking for workers, and why a falling employment rate could be a good thing … or a bad thing if it means too many people are leaving the labor market.
He discusses the importance of American society providing a safety net but not a hammock.
Rob and Jerry also talk about how employment can be a lagging economic indicator and what we might expect in the months ahead.
They also discuss long-term trends that will impact the labor force and the economy, including:
Aging of the workforce (500K+ net loss to the workforce each year)
Abortion (60MM babies aborted/40MM would be between 18-50 years old today/20MM prime working age)
Expansive social safety net
And they talk about the importance of current trends, including:
COVID reduced labor participation rate
Did not rebound due to, in part, early retirees (55+ taking early retirement)
Nearly all women back to work
Only 50% of men back to work
Cultural stigma of not working if working age seems to be gone
Anti-fertility trends (1-2 kids average vs. 3-4) and the importance of immigration
Bowyer also explains why an incredibly strong dollar can actually be concerning.
Furthermore, they discuss rising interest rates and the ripple effect they’re having through the economy, and what it might take to get inflation under control.
They also answer the question: Are we officially in a recession yet?
On this program, Rob also answers listener questions:
When do annuities make sense as an investment?
What is the best way to start saving or investing for a very young child?
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