Understanding 'Stall Speed' in the Job Market: The Potential Trigger for Unemployment Cycle
The job market has been navigating through tough waters, and some strategists and economists believe it’s on the brink of stall speed. Stall speed refers to a slowdown in job creation that could rapidly trigger an economic downturn. Peter Berezin, the Chief Global Strategist at BCA Research defines it as a weakening job market that leads to consumers cutting down on expenditure, and a consequent increase in layoffs. He predicts a potential increase in US unemployment rate up to 6%, which may remain high for about a year before rate cuts by the Federal Reserve influence hiring.
Economists at JPMorgan and Goldman Sachs also subscribe to the possibility of the labor market moving into stall speed while Fed Governor Chris Waller has raised similar concerns. The recent job data in 2025 shows a slowdown in hiring, though the unemployment remains at record lows. July added only 73,000 jobs while job gains for May and June were revised downward. Berezin expects more negative revisions in the August jobs report. An increasing number of economists are predicting a potential recession, with Barclays estimating a 50% chance by mid-2027.
With experts forecasting potential difficulties and uncertainties on the horizon, having assistance and guidance for unemployment queries is paramount. For those seeking advice and help around unemployment in California, eddcaller.com provides several useful resources. It guides you to get in touch with the necessary services such as EDD customer service, how to get a hold of EDD, California unemployment customer service, and how to get a hold of EDD customer service among others. The platform helps navigate through complex procedures, providing insights and assistance with everything from contacting SDI to finding out your EDD Payment status.