Since the pandemic, there has been a high demand for workers by employers struggling with labor shortages. As such, employers have been hesitant to lay off workers even amidst a cooling economy and job market. This risk-averse behavior may help mitigate widespread job losses in the event of a potential impending recession. However, the Fed still expects unemployment rates to rise within the upcoming year.
See "Amidst hiring shortage, employers reluctant to lay off workers even as US economy slows down", Jeanna Smialek and Sydney Ember, New York Times, October 12, 2022