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08.05.24
In this edition of NC Economy Watch, we show how our economy is running on “two tracks”, with many households and businesses experiencing the benefits of an expanding economy while others are coming under increasing pressure from high prices, high interest rates, and a weakening labor market.
The Two-Track Economy
When economists talk about the direction of the economy, they often focus on recessions and recoveries (or expansions). Economic turning points are relatively easy to spot: indicators like employment, income, and gross domestic product (GDP) fall when the economy goes into a recession and rise when the economy is recovering or expanding. Our economy has been in expansion mode for the past four years, generating wealth and improving the economic well-being of households and businesses in North Carolina and around the country.
But just because the economy is growing doesn’t mean that everyone is benefiting. The economy can be said to be operating on two tracks, with some individuals gaining from our growing economy and others missing out.
For example, we reported in the July 2024 edition of NC Economy Watch that many businesses are currently reluctant to hire new employees, but they’re also reluctant to let workers go. This is a challenging environment for jobseekers who now face a labor market with fewer opportunities than before, but it’s a favorable environment for current workers who now have a relatively low likelihood of losing their job.
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