The labor market, which has recently hit record levels of job openings, is starting to slow. To determine how fast this process is occurring, economists are looking to five signs for guidance:
- Watching the demand for workers and the rate at which it stabilizes.
- The rate at which jobless claims, a proxy for layoffs, are rising after recently hitting record lows.
- The rate at which average hourly earning and wage growth slows down.
- Whether the unemployment rate starts to rise after reaching lows.
- The number of employees that are quitting their jobs, after quits reaching highs suggesting a strong labor market.
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