While the labor market is recovering at an impressive pace, there is still a ways to go until the U.S. reaches full employment.
Main streets across the U.S. are flooded with Help Wanted signs, companies are complaining that they can’t find workers, and economic indicators are pointing to a tight labor market. This is unusual, at a time when unemployment is so high. The current labor market dynamics represent a supply and demand mismatch, not unlike that seen elsewhere in the economy. The key question is whether it will be resolved when distortions related to the pandemic recede.