Post-COVID inflation in rear view

Nobody should be surprised by the latest jobs numbers. As the economy unwinds the post-Covid inflation bubble, the unemployment rate once again ticked up to 4.2 percent as demand continues to soften.

This is what historically, almost always happens after the economy overheats from inflation: Households max out their credit cards, purchases slow down and so does the economy until finally, unemployment rises, the cycle ends and begins anew.

Since Jan. 2023, unemployment has increased 1.3 million, almost all of which has been during the Biden administration, although there is likely more to come.