Journal Article

Labor Market May Remain Tight until Labor Demand Cools Further

Abstract: U.S. labor demand—measured by job openings or vacancies—has started to cool but is still elevated compared with pre-pandemic levels. At the same time, labor supply—measured by the labor force participation rate remains below pre-pandemic levels. This weakness in the labor force participation rate may persist, as it reflects lower participation among older individuals. Accordingly, the imbalance between demand and supply in the labor market may continue until labor demand cools further.

Keywords: labor market; employment; pandemic; job vacancies;

JEL Classification: J21; J20;

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2022-10-21

Issue: October 21, 2022

Pages: 4