Are labour markets in the rich world too tight?
Certainly in America, and probably elsewhere
LAST MONTH Jerome Powell, the chairman of the Federal Reserve, identified the most uncomfortable trade-off in economics. “Today’s labour market”, he said at a press conference, is “tight to an unhealthy level”. In most places and at most times a fall in unemployment, or a rise in the number of people in work, is welcome. But labour markets can become too strained, creating worker shortages that stop production and cause wages to spiral, which can feed into overall inflation.
This article appeared in the Finance & economics section of the print edition under the headline “Too much of a good thing”
Finance & economics April 9th 2022
- Are labour markets in the rich world too tight?
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- The American property market is once again looking bubbly
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- Omicron is dealing a big blow to China’s economy
- HDFC Bank’s merger marks a milestone for India
- Has the pound become emerging-market money?
- China has a celebrated history of policy experiments
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