JOLTS Shows No Relief Yet for Inflationary Pressure from Job Markets
JOLTS Shows No Relief Yet for Inflationary Pressure from Job Markets The Job Openings & Labor Turnover Survey (JOLTS) data for February, reported this morning, continues to show excess job openings--that is, the number of job openings is greater than the number of unemployed people. That's one aspect of the stubborn inflationary pressure that prevents the Fed from starting to cut interest rates. When companies want to hire but there are comparatively few people looking for work, they tend to respond by increasing wages to compete successfully in attracting the few workers available. Of course that's great for workers (including the ones who already have jobs), but higher wages also stimulate greater demand for goods and services, which may push prices higher. The Fed needs to see more balance between demand and supply throughout the economy, including in labor markets, before interest rates can start to come down meaningfully. We'll see whether the Employment Situation report for March starts to show better balance in the job market. #economy #interestrates #employment #jolts #macroeconomics #aproposmacro #macrobond
