As the Fed tries to tamp down inflation, there are certain signs we’ll need to see for economists to believe we’re on the road to recovery.

While it’s a bit counterintuitive, in order for the economy to get back to a healthy level, it’s going to require unemployment to rise.

As it currently stands, low unemployment combined with high job openings mean employers must pay more to obtain talent, which only further fuels inflation.

So, while unemployment sat at 3.7% in August, Fed officials expect the rate to rise to 4.4% by next year as it aims to slow the economy down.

If this were to play out, we’d be looking at roughly 1 million Americans added to the unemployed ranks.

We’ve already seen announcements that FedEx will be firing workers in advance of its busiest season. Meta announced they will be doing a hiring freeze after years of rapid hiring.

So, with the labor market due for a shake up in the coming months, businesses will need creative solutions to staff their offices and workers will need alternative means to fill their bank accounts.

This spells opportunity for early-stage companies.

We can’t just throw up our hands and accept that millions of Americans will be out of work. That isn’t an acceptable “cost of doing business.”

Instead, the way we view employment as businesses and workers could be in need of a shakeup.

Take Runner, for example – a former A+E featured startup.

This startup’s innovative matching system connects clients to fractional and temp-to-hire operational talent – otherwise known as “runners.”

These workers are classified as W2 employees of Runner itself, providing them with benefits usually not availalble to those outside of the traditional full-time space.

On the flipside, companies are able to focus on growing their business without worrying about staffing and a bloated full-time payroll.

By providing more flexibility to the businesses and more tailored opportunities to the workers, Runner helps bridge the employment gap that will only grow larger as the Fed continues its efforts.

And although the opportunity to invest in this company is no longer open (at the moment), this is just an example of the types of startups that could be poised to excel in this new landscape.

These things don’t happen in a vacuum. There is always an action and reaction.

As an angel investor, you’re uniquely positioned to profit from these changes.