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The economy goes up and down. So being up now doesn’t mean you will never go down again.
The economy, especially when it comes to jobs, has been doing well. But maybe too well – growing really fast, as happened when the economy began recovering from the pandemic shock, brought inflation because everyone was suddenly competing for resources whose producers hadn’t caught up yet. Most notably, the “supply chain” – the system that gets things moved where they need to go to make more things, which are then moved again, etc. – was cut way back during the pandemic, so getting supplies again started costing more and more when the economy suddenly snapped back. Inflation is harmful, so the Federal Reserve (“the Fed”), which controls how much money moves around, tried to control it by making it more expensive to borrow money so people would cool down their economic activity. But that can in turn cool things down too much and cause a recession. The Fed tries to do what’s called a “soft landing” and control inflation without going so far as to cause a recession, but that’s hard to do because you can’t know exactly what’s going to happen in advance.
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