Journal Article
Labor Market Dynamics During the 2021-24 Inflation Surge
Abstract: This paper revisits the common interpretation that the surge in the vacancy-tounemployment ratio during the 2021–24 inflation episode primarily reflected an overheated labor market. Instead, I argue that the increase in vacancies relative to unemployment was largely driven by falling real wages and a rise in job-to-job transitions, as workers sought to recover lost purchasing power, rather than by broad-based labor market overheating.
https://doi.org/10.29338/ph2025-03
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Provider: Federal Reserve Bank of Atlanta
Part of Series: Policy Hub
Publication Date: 2025-06-26
Volume: 2025
Issue: 3
Order Number: 2025-3