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By Kristin Myers, Editor-in-Chief

What's Happening Today

Information coming out this week could indicate how safe your job is or how hard it may be to find a new one. The Labor Department is set to release data about the number of job openings, the number of people quitting or switching their jobs, how many workers are filing for unemployment benefits, the latest unemployment figures, and more.

The labor market has been under scrutiny as economists and investors watch employment figures carefully for signs of weakening. That's because the strength of the labor market is very important to the Federal Reserve, which has been raising interest rates to bring down rising inflation.

If the jobs market stays strong and the unemployment rate remains low, the central bank says the economy will be strong enough to withstand the strain of higher interest rates that could slow down economic growth. If employers pull back on hiring, unemployment ticks upward, and people start to lose their jobs, policymakers will find it even more difficult to fight inflation. What's more, increasing levels of unemployment could mean the U.S. is indeed in the midst of a recession.

One promising sign about the state of the U.S. economy is that economic activity in the manufacturing sector, a key driver of growth, expanded in the month of July, according to the latest Purchasing Managers' Index (PMI) released by the Institute for Supply Management. The PMI was 52.8%—better than expected—as purchasing managers at factories reported a slightly optimistic view of the future.

Any reading above 50 indicates that manufacturing is expanding. But while the PMI was higher than forecasted, it was still lower than June's 53%, indicating that while manufacturing is still expanding, it's growing more slowly.

- Kristin

Editors' Picks

Home Prices Cooled at Record Pace in June, According to Housing Data Firm (CNBC)

Dollar-Store Dinners and Vats of Shampoo Help Families Cope With High Prices (The Wall Street Journal)

How to Navigate the Wedding Season When You're on a Budget (The Balance)

How Do I Start Saving For My Wedding? (The Balance)

As Inventory Piles Up, Liquidation Warehouses Are Busy (The New York Times)

How to Legally Take Over Your Parent's Finances (The Balance)

What Teens Need To Know About Cryptocurrency (The Balance)

Term of the Day

Cyclical Unemployment

There are three main types of unemployment: cyclical, structural, and frictional. Cyclical unemployment is, unfortunately, the most familiar. It occurs during a recession. The second two—structural and frictional—make up the natural unemployment rate.

Cyclical unemployment is the main cause of high unemployment rates. It's caused by a downturn in the business cycle. It's part of the natural rise and fall of economic growth that occurs over time. Cyclical unemployment is temporary and depends on the length of economic contractions caused by a recession. A typical recession lasts around 18 months. When the business cycle re-enters the expansionary phase (rising toward the peak of the wave), the unemployed tend to be rehired.

Off the Charts

Traditionally, the FICO score is the most popular score used for important loans like home and auto loans. No matter what score you use, most models are looking for a way to predict how likely you are to pay your bills on time.

The FICO credit score looks at how much debt you have, how you've repaid in the past, and more. Scores range from 300 and 850 and are made up of the following components: