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ppg677 | 3 years ago

I think it is the labor market. Pandemic caused a lot of people to leave the labor market.

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7speter|3 years ago

But we’re at full employment…

icedchai|3 years ago

The people who “drop out” of the labor market (not working and don’t collect unemployment) basically are not counted. They are not considered part of the labor force. I know people who get burned out and live off their savings for long periods of time.

time_to_smile|3 years ago

Full employment of a smaller labor force, you need to look at the labor force participation rate [0] to get the whole picture.

Yes unemployment is at near record lows, but the percent of the population in the work force is the lower than its been since the 1970s.

0. https://fred.stlouisfed.org/series/CIVPART

steve_adams_86|3 years ago

Not sure what to make it of it, but statistics suggest that our per unit output of labour has dropped substantially. So, good employment rate or not, we’re producing less with our labour either way.

This is the case in the United States and Canada, at least. Not sure about the rest of the world.

yxhuvud|3 years ago

Which is a statement that doesn't gainsay what you commented on in any way. People leaving the labor market is not measured by the unemployment rate, it is measured by the labor participation rate.

mjevans|3 years ago

Two things would improve Labor...

4 An immigration policy that allows new (eager to work for less) citizens a legal path to work within the country, and maybe even become full citizens in the future.

1 More housing so workers can afford to live near where the jobs are.