American companies "hoard labor" to buy time for the Federal Reserve, but more companies are approaching the brink of layoffs

The extent to which the Federal Reserve can avoid an economic recession largely depends on a peculiar phenomenon after the epidemic - labor hoarding - and how long it will last. Despite interest rates being at their highest level in over 20 years and signs of economic cooling, companies that experienced labor shortages during the epidemic have largely avoided layoffs. Instead, they have reduced their recruitment scale, decreased the number of vacant positions, and shortened working hours. However, recent data is worrisome, as employers may soon be approaching their limits, which could accelerate the pace of layoffs