Nov. 7. For the week of Oct. 24, new unemployment claims in North Carolina were 25.28 percent lower than in the previous week, despite high inflation and the threat of a recession, according to WalletHub’s updated rankings.

Of note

—Weekly unemployment claims in North Carolina decreased by 25.28 percent  compared to the previous week. This was the third biggest decrease in the U.S.

—Weekly unemployment claims in North Carolina were 35.45 percent lower than in the same week last year. This was the 14th biggest decrease in the U.S.

—Weekly unemployment claims in North Carolina were 26.90 percent lower than in the same week pre-pandemic (2019). This was the 13th biggest decrease in the U.S.

—Unemployment Insurance Initial Claims per 100,000 People in Labor Force in North Carolina: 47.

Changing again?

The U.S. has reduced unemployment from record highs during the COVID-19 pandemic to near record lows.

Now, however, high inflation and the looming threat of a recession could cause unemployment claims to spike once more.

For the time being, the job market is still in good shape, with new unemployment claims decreasing slightly week-over-week on Oct. 24.

There are currently 5.8 million Americans unemployed in total.

Advice from an expert

Henry H. Perritt Jr., professor of law emeritus and director of the graduate program in financial services law emeritus – Illinois Tech Chicago-Kent College of Law, answered these questions:

What can people do to prepare for a potential recession?

The best thing to do is to get a secure job. The second best is to begin replenishing savings.

Do you think the hiring dynamic is currently tilted in the employees’ favor?

Very much so, but it is beginning to shift as the economy starts to cool and a recession enters its early stages.

With inflation at a 40-year high, what is your advice for people looking to protect their finances?

Shift investments from cash to stocks, as the stock values decline. Cut back on pricey nonessential services, like eating out, and airline vacations.

Given the current circumstances, what trends do you expect to see in terms of unemployment in the foreseeable future?

Unemployment will increase as the economy starts to cool and the recession enters its early stages.

What are your predictions for the job market as we move forward in 2022 (job gains, hiring confidence, quit rates, etc.)?

Vacancy rates will decline, as will quit rates; unemployment will increase somewhat. These are good trends because our two biggest economic problems right now are inflation and too many people who do not want to work. Labor market slack will mitigate both of these phenomena.