text: Considering Summers’ comments on the job market, despite strong jobs data over the past few months, except November, workers are quitting at concerning rates. According to a survey conducted by Limeade, a workforce research organization, the top three reasons people are leaving work are burnout, lack of flexibility, and searching for an environment that promotes mental health. 4.3 million Americans quit their jobs in August, and 4.4 million quit in September, totaling 5.39% of the workforce in the country. In 2022, job opportunities are expected to remain plentiful, with the “Great Resignation” lasting well into the year, according to ZipRecruiter Chief Economist Julia Pollak. Right now, there are an estimated 11 million job openings. Pollak mentions that employers will likely continue to increase the number of incentives offered to employees. This will eventually encourage many Americans to take advantage of unstaffed companies offering above-average pay. Jim Glassman also hit on this topic, saying that “a few million workers could return to the job market if pandemic stresses fade, but labor shortages are likely to persist” into 2022.Interest rates are now expected to rise as soon as March, says SGH Macro Economist Tim Duy, when the Fed may complete tapering after it reconsiders tapering pace in the December Federal Open Market Committee meeting. “If unemployment falls further from the current 4.2%, and maybe if it even just holds here, I think the Fed needs to use the January meeting to open the door for a March rate hike,” he says. Duy mentions that while the Fed initially anticipated an increase to rates after tapering had completed, there is a possibility that the two measures may overlap one another, with asset purchases continuing as interest rates increase simultaneously. Goldman Sachs suggests that “we are on a long road to higher nominal interest rates relative to the post-Global Financial Crisis world.” With these expectations of rates settling at a level above “normal,” we can expect inflation will settle above its nominal range as well. – T.W.ECONOMIC WARNING INTSUMChinese slowdownThe Chinese central bank, called The People’s Bank of China (PBOC), announced a reduction in the required reserve ratio that will go into effect on December 15th. The reduction is the second this year and is planned to stimulate economic growth that is beginning to slow down. The required reserve ratio will be reduced to 8.4% and is expected to free up $188 billion that can be used for banking operations such as loans and investments.China’s economic growth has been slowing since Q2 of 2021, with growth falling from 18.3% in Q1 to 7.9% in Q2 and 4.9% in Q3. The second quarter of 2021 marked the first time in 30 years China has grown at a slower rate than any other emerging market. Analysts have attributed the slowdown in growth to several factors, including power shortages, Covid restrictions, debt in the property sector causing construction slowdowns, and supply chain shortfalls that have created issues for the nation when trying to obtain raw materials for manufacturing.The Chinese government created a new “supply chain organizer” called the Chinese Logistics Group to combat logistics and supply chain issues. China’s government formed the group by merging China Railway Materials, Huamao International Freight Limited (Shenzhen Branch), China Logistics, China National Packaging Corporation, and China National Materials Storage and Transportation Group. The group has investors, including COSCO Shipping, China Eastern Airlines, and China Merchants Group.