SPRINGFIELD, Mass. (WWLP) – For months, Americans have been dealing with high inflation, and the effort to control that inflation could soon have an impact on the job market.

Interest rate hikes by the Federal Reserve are designed to reduce inflation by cooling down the economy, and that could mean less hiring going forward. That means now may be the best time to find a new job or negotiate a pay raise.

Currently, there are a record number of job openings; 11.2 million in July. Right now, there are an estimated two jobs available for every person without a job, and the unemployment rate stands at a very low 3.7%.
Recent research from Challenger, Gray, and Christmas found that layoffs are also at record lows.

Things could be changing, however. The Federal Reserve’s most recent rate increase on Wednesday was 0.75%, and came after another similar rcent raise. It is not expected to be the last one, either. According to the Fed, these changes could lead to “some softening of labor market conditions.”

Labor experts believe that by this time next year, the job market will have cooled significantly.