🤔 Interesting case

Although I still don’t completely buy into it.

*Tight Labor Markets Wage Pressure

Low unemployment leads to fewer available workers, driving up wages and labor costs for businesses.

*Inflationary Pressures

Higher wages can increase consumer spending, driving demand and potentially leading to higher prices and inflation.

*Interest Rate Hikes

Central banks may raise interest rates to combat inflation, increasing borrowing costs and potentially slowing down economic activity.

*Economic Cycles

Low unemployment often occurs at the peak of an economic expansion, where imbalances and vulnerabilities can lead to a downturn.

*Overheating Economy

Very low unemployment may indicate an unsustainably fast-growing economy, increasing the risk of an economic correction or recession.