IDEAS home Printed from https://ideas.repec.org/a/fip/a00068/101161.html
   My bibliography  Save this article

Labor Market Dynamics During the 2021-24 Inflation Surge

Author

Listed:
  • Andres Blanco

Abstract

This paper revisits the common interpretation that the surge in the vacancy-tounemployment ratio during the 2021–24 inflation episode primarily reflected an overheated labor market. Instead, I argue that the increase in vacancies relative to unemployment was largely driven by falling real wages and a rise in job-to-job transitions, as workers sought to recover lost purchasing power, rather than by broad-based labor market overheating.

Suggested Citation

  • Andres Blanco, 2025. "Labor Market Dynamics During the 2021-24 Inflation Surge," Policy Hub, Federal Reserve Bank of Atlanta, vol. 2025(3), pages 1-9, June.
    • Handle: RePEc:fip:a00068:101161
    DOI: 10.29338/ph2025-03
    as

    Download full text from publisher

    File URL: https://www.atlantafed.org/-/media/documents/research/publications/policy-hub/2025/06/26/03-labor-market-dynamics-during-2021-24-inflation-surge.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.29338/ph2025-03?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    inflation surges; market tightness; fiscal and monetary policy;
    All these keywords.

    JEL classification:

    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:a00068:101161. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Sarwark (email available below). General contact details of provider: https://edirc.repec.org/data/frbatus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.