Journal Article

Post-Pandemic Labor Shortages Have Limited the Effect of Monetary Policy on the Labor Market


Abstract: The labor market has so far shown remarkable resilience to the Federal Reserve’s recent monetary policy tightening. Severe labor shortages in the post-pandemic era have led many employers to hold on to workers and hire less-skilled workers—even though they expect demand for their goods or services to weaken in the future. As a result, unemployment remains low, and labor productivity has declined.

Keywords: labor market; monetary policy; unemployment rate; labor productivity;

Access Documents

File(s): File format is application/pdf https://www.kansascityfed.org/Economic%20Bulletin/documents/9801/EconomicBulletin23Cohen0922.pdf
Description: Full Text

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2023-09-22

Pages: 4