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.
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Provider: Federal Reserve Bank of Kansas City
Part of Series: Economic Bulletin
Publication Date: 2022-10-21
Issue: October 21, 2022