“Businesses that experienced unprecedented challenges restoring or expanding their work forces following the pandemic may be more inclined to make greater efforts to retain their employees than they normally would when facing a slowdown in economic activity.”

In a recent speech, Lael Brainard, the Fed’s vice chair, also said this may mean that slowing aggregate demand will lead to a smaller increase in unemployment than we have seen in previous recessions as reported by The New York Times in a feature titled, “Companies Hoarding Workers Could Be Good News for the Economy.”