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Recent US Jobs Resilience Reflects Easing Labour Supply Constraints
Continuing payroll gains are being viewed as a sign of wider US economic resilience, but much of the jobs growth in the past 15 months reflects easing labour supply constraints rather than robust growth in labour demand. This has allowed actual employment to catch up with companies’ desired employment levels after suffering severe labour shortages in 2021, as discussed in Fitch Ratings’ latest Economics Dashboard. Despite recent jobs growth, the share of adults in work remains well below pre-Covid-19 pandemic rates This reflects the lasting fall in labour force participation rates and shows the impact of labour ... (full story)