RALEIGH, N.C. -- Friday morning, the Labor Department will release the May jobs report. It's expected to show the job market has finally reached pre-pandemic levels. Dr. Michael Walden, Professor Emeritus of Economics at North Carolina State University, joined ABC11 Morning News to talk about the jobs report predictions, inflation and efforts to increase interest rates.
Dr. Walden says a lower job number than we've had in recent months shows the economy is already slowing down. But he predicts there's a 33% chance the country will be in a recession by the end of the year. Despite high consumer spending, Dr. Walden says higher prices will make it harder for people to afford basic necessities, which will overall slowdown spending. He also advises college graduates not to hold out for the perfect job, because he predicts job hiring will also slow down towards the end of the year.
When asked about the risks for rising interest rates, Dr. Walden says the biggest risk is to 401K. He advises that if you plan to retire in the next few months, see if you can delay your retirement by about six months. However, if you are not near retirement age, Dr. Walden says there's no major concerns because the market will rebound.