The Jobs Report in Light of what Powell Said: The Fed Cannot Create Supply of Labor, But it Can Slow the Demand for Labor
The layoffs in the tech and social media bubble are quickly getting absorbed by other companies, including in other industries, while the number of layoffs and discharges across all industries are near historic lows, and applications for unemployment insurance remain near historic lows. | Wages have continued to surge; and for job hoppers, wages have exploded as desperate companies are willing to pay to fill slots, amid a gigantic pile of job openings and massive job hopping as workers are arbitraging the tighter labor market for their benefit. ● And today, we got more of the same with the jobs report from the Bureau of Labor Statistics. The labor force – people who either have jobs or are actively looking for jobs – is still the key problem: It dipped further and remains far below pre-pandemic trend. This is the supply of labor.
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