Employment is a lagging indicator that typically looks pretty good at the beginning of a recession when jobs numbers are still strong, and only shows its worst conditions when recessions are bottoming out, so the lack of current job weakness does not rule out severe upcoming labor market deterioration.

factualpending

Speaker

John Lodering

Evidence Quote

as a lagging indicator if you go back and look at almost every recession the jobs numbers actually look pretty good at the beginning of a recession in hindsight and they actually tend to bottom they look their worst when recessions are are bottoming coming out [49:07]

Source

Lacy Hunt: We're Facing A Perfect Storm Of 'Economic Deterioration'Wealthion
Created: 8/12/2026, 6:42:20 PM

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