In his Jackson Hole speech Chair Powell noted the unusual nature of the current balance in the labor market and his concern that the balance could unwind quickly. “ Overall, while the labor market appears to be in balance, it is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers. This unusual situation suggests that downside risks to employment are rising. And if those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment.” Recent reports on the state of the labor market reflect what...
