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Chart of the Week: The Labor Market Continues to Soften
One of the main drivers in the falling rate of inflation has been the consistently softening labor market. The Covid stimulus and recovery resulted in a huge employment surge. The unique nature of the boom and the work from home policies gave workers unprecedented negotiating power. For a brief moment in time it even looked like a return of the 1970s and a wage price spiral was a real possibility. But as we all know now, things are normalizing and they’re normalizing quickly now. Tuesday’s JOLTs report and the quit rate, in particular, confirmed the stance of capital vs labor in this environment and capital is ... (full story)