Labor market nearing pre-pandemic conditions, Fed report says
How has labor demand changed in recent months?
Labor demand has eased in recent months, with job openings declining in many sectors of the economy. Nominal wage growth has continued to slow, and the balance between labor demand and supply appears to be similar to that before the pandemic. This indicates a relatively tight labor market that is not overheated.
What is the current state of the U.S. labor market?
The U.S. labor market is nearing pre-pandemic conditions, with the Federal Reserve reporting it as "tight but not overheated." Job growth has slowed, and the unemployment rate has risen to 4.1%. However, labor supply has increased, supported by strong immigration, and nominal wage growth has slowed. The balance between labor demand and supply appears similar to the period before the pandemic.
What is Jerome Powell expected to discuss in Congress?
Jerome Powell is expected to discuss the current state of the US labor market, inflation, and the Federal Reserve's monetary policy approach. He will likely address the balance between labor demand and supply, the gradual easing of inflation, and the potential for interest rate cuts in the future based on economic data.