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Jump-Start Your Economy: Slow Down on Hiring – It Just Might Work!

As the world continues to grapple with the consequences of the pandemic-induced recession, there has been a noticeable slowdown in U.S. hiring. Despite widespread economic volatility, some believe that the slowdown in hiring is a sign that the US economy may be adjusting to new realities in a slow and gradual manner — which could be just what the economy needs. It’s no surprise that the pace of job creation has slackened during the pandemic. Many businesses have had to reduce staff in order to remain financially viable, while others have been forced to scale back operations due to consumer spending habits. All of this has resulted in an overall lack of demand for labor, which has caused employers to be more cautious about filling open positions. However, while this slowdown is worrisome, it may actually be beneficial for the U.S. economy in the long run. By allowing employers to take a wait-and-see approach to hiring, it allows businesses the time to modify processes and to ensure that new hires can provide value in the long run. This could mean increased success for those new hires, and increased productivity for their employers — a win-win situation. Moreover, reduced hiring could stimulate higher wages. With fewer people out there actively looking for jobs, employers may be more willing to pay above-market wages in order to attract and retain the best talent. This is especially true in industries where labor shortages exist. Finally, the slowdown in hiring may help to reduce the inflammation of wages due to inflation. By allowing the number of available labor positions to decrease, employers may be less tempted to raise wages in order to attract workers. As a result, inflation would be kept in check and businesses may be able to maintain costs and build a sustainable economic recovery. Even though the continued slowdown in hiring is concerning, it may be just what the U.S. economy needs to adjust to its new reality. By allowing employers to take a more considered approach to hiring, it may help to create opportunities for success for workers and businesses alike.