The US’s chances of dodging a recession are growing given layoffs remain low, top Moody’s economist says

• The latest jobs report shows that the US can still dodge a recession, according to the top economist at Moody’s.
• “Job market slack is forming and wage pressures are abating,” Mark Zandi said Sunday.
• Friday’s report showed unemployment fell to 3.5% in December, while hourly earnings rose at a lower-than-expected rate.

The latest US jobs report has boosted the prospect that the world’s largest economy will avoid a recession this year, with the data showing companies aren’t laying off workers, according to the top economist at Moody’s Analytics.

Mark Zandi said that Friday’s report – which showed average hourly earnings rising by a lower-than-expected 0.3% and the unemployment rate falling to 3.5% – suggested the economy may still be able to weather a downturn in 2023.