0_public:macro:labour
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| + | ====== Labour ====== | ||
| + | Financial markets are bracing for the possibility that the Fed may keep borrowing costs higher for longer than hoped, putting a May rate cut in doubt. A separate report Friday showed that employers continue to create jobs without spurring a surge in wages, which may hinder the disinflationary process. | ||
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| + | In his Congressional testimony last week, Powell reiterated that the central bank is in no rush to cut rates until policymakers are convinced they’ve tamed inflation. The economy and labor market remain strong, meaning the Fed has room to wait for clearer evidence that inflation is headed back to policymakers’ 2% goal before cutting rates. | ||
| + | ===== What is a cooling labour market? ===== | ||
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| + | Slowly falling vacancies and a slight increase in unemployment illustrate a cooling labour market. | ||
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| + | A cooling labor market refers to a situation in which the demand for labor is slowing down or declining, making it more challenging for job seekers to find employment or for workers to secure higher-paying positions. | ||
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| + | A cooling labor market <wrap hi>can have various causes</ | ||
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| + | No more rate hikes. | ||
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| + | ===== What is a tight labour market? ===== | ||
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| + | The labor market is “tight” when <wrap hi>job openings are plentiful</ | ||
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| + | Job Openings to Unemployed Person Ratio | ||
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| + | However, longer-term trends – such as an aging population, years of reduced immigration, | ||