We are weeks away from the new year and a new report finds a "mild" recession is coming.
According to Citi Global Wealth Investments, a total of two million jobs will be lost across the country with the unemployment rate rising above 5%. The company states 400,000 construction jobs will be lost, as mortgage rates continue to rise and fewer people buy homes.
The feds are expected to raise interest rates again on Wednesday.
Danny Court, a Valley senior economist with Elliott D. Pollack & Company, says the housing, automotive and appliance industries will be impacted the most.
“We’re definitely going to see a recession,” Court said. “We’re hoping it's mild. We’re hoping the fed continues their trajectory of taking care of inflation. So our message is short-term pain will lead to long-term success.”
Court says there are a lot of big manufacturing companies in the Phoenix metro area, so he doesn’t believe the number of jobs impacted will be as high as in other states.
“A traditional recession, historically, we tend not to lose as many jobs as our peer states and we also tend to boom out of those recessions, so we tend to see a large amount of economic activity coming out of it,” he said.
