Usually, there are two things always happen during a recession. The GDP goes DOWN and unemployment rate goes UP. That make sense since we feel recession while we start worrying about our jobs. These two factors feed on each other. When companies do not make money, they start to layoff workers. When workers are losing their jobs, they spend less. And, when people spend less, companies generate less revenue from its sales. A recession can start from each of these points. Right now, the GDP is going down. However, the unemployment rate is also FALLING. Right now, people are not worry about their jobs. The Labor Participation Rate is as low as it’s been in four decades. This unsustainable! How can companies are not making enough money but still keep hiring more people? What issues will we face in the recent months or years?
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