Jaspreet Singh: The Job Market Reset Is Here — What You Should Know
Written by
Cynthia Measom
Edited by
Chris Cluff
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Economic woes are not unfamiliar to Americans. The price of groceries and gas are proof. However, more economic challenges are on the way in 2024, and this time they’re related to the job market.
Financial influencer Jaspreet Singh recently told his YouTube followers that the job market reset is here and there are three things to know about: economic shifts, employer shifts and what it all means for you.
Is now a good time to change jobs?
Economic Shifts Are Coming
Interest rates have risen sharply over the past couple of years. The Federal Reserve Bank has raised interest rates 11 times during 2022-23.
Singh said we have not seen the result of the higher interest rates yet, but economic shifts are coming.
“A lot of economists say that it takes somewhere between 12-18 months to really feel the impact of an interest rate hike,” he said.
Not only do interest rate hikes affect consumers via higher mortgage, auto loan and credit card interest rates, Singh said, but they also affect businesses.
“If you’re a business and you want to go and borrow more money, that becomes more expensive,” Singh said. “And if you are a business and you’re sitting on debt — well, now that debt is going to readjust because corporate debt is not a 30-year fixed rate mortgage. Many times, it’s a five-year term. That means that you could go out and borrow millions and millions of dollars at 3%, and then a few years later that debt is going to readjust.
“And now if interest rates are much higher, that means your interest payments are also going to grow — not because your debt balance is necessarily bigger, but because the interest rate to service that debt is higher. And 2024 is when we’re starting to see this big wave of corporate debt readjust. [Then] 2025 is an even bigger wave of corporate debt readjustments, and that’s why you have a lot of corporations sitting on the edge of their seats wondering where interest rates are going to go. Because if interest rates stay high, that means their interest payments are going to skyrocket.”
Singh said the Fed wants to see unemployment rise because it can help cool inflation.
“What the Federal Reserve Bank is saying is if you don’t have an income, you can’t go and shop,” Singh said. “And if you can’t go to the store to shop, there’s no demand for those products. And if there’s no demand for those products, that can force companies to then lower the prices of their products.”
Employer Shifts Will Soon Follow
Singh said corporations are having to deal with the impacts of higher costs in 2024. He said inflation has caused costs, including labor, to escalate. He said this is going to make them push for higher productivity from their employees.
“Corporations have kind of bloated their staff over the last couple of years,” Singh said. “So a lot of corporations have a lot of staff, and many of these salaries have risen pretty quickly in the last few years — so now corporations have these higher costs. At the same time, corporations are worried about these slower sales … because a lot of consumers are kind of getting tapped out.
“That’s one of the reasons why you’re seeing more and more companies push for this return to office — especially in 2024 — because they need more productivity out of each employee. They need more revenue out of each employee to justify that position, to justify that division, to justify that growth; and naturally, in addition to that, companies need to be prepared just in case we hit a recession.”
What This Means for You
Singh said companies are going to want the strongest and the best team players possible, which is a shift from what happened in 2021 and 2022.
“As we saw this economic boom and this wage growth,” Singh said, “a lot of people were able to get positions where they didn’t necessarily have to, let’s say, work too hard — where they could kind of just slide under the radar.”
With the economy slowing down, Singh said, companies are going to start demanding productivity, efficiency and results from employees — and those who aren’t meeting their expectations could soon find themselves out of jobs.
“So that means … if you’re that type of person who’s willing to put in the 110%, you’re going to have the ability to get a lot more job prospects, a lot more raises and a lot more ability to see growth in your career,” Singh added. “And somebody who just kind of wants to cruise and just get through the system … that’s when businesses have to really weed out the not-so-good employees.”
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