When the Federal Reserve raised interest rates Wednesday to fight inflation, it made car-buying and house-buying more expensive. The rate hike “ends up restricting lending, which restricts investment, which then has impacts on employment. Then the layoffs and unemployment,” said Michael Busler, professor of finance at Stockton University.
But amid increased worries about a looming recession, unemployment in New Jersey remains just under 4%. And though the state added some 9,800 jobs in June, businesses are still struggling to find workers. However, low unemployment will help cushion New Jersey if the American economy gets even worse, Busler said.
