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Labor Market Not Overly Tight, Demographically Adjusted Measure Shows

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  • Emil Mihaylov
  • Carlos E. Zarazaga

Abstract

Elevated inflation traditionally accompanies prolonged low unemployment rates, such as those currently observed in the U.S. However, price pressures have remained comparatively restrained, prompting further examination. The labor input utilization rate? the proportion of total hours individuals devote to work?provides insight when demographically adjusted, particularly when accounting for aging baby boomers. The indicator suggests the labor market wasn?t overly tight in second half 2018.

Suggested Citation

  • Emil Mihaylov & Carlos E. Zarazaga, 2018. "Labor Market Not Overly Tight, Demographically Adjusted Measure Shows," Economic Letter, Federal Reserve Bank of Dallas, vol. 13(10), pages 1-4, December.
    • Handle: RePEc:fip:feddel:00065
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