Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why the Labor Force Drop Confuses the Fed
The labor force participation rate just fell to a 50-year low outside of pandemic-era lows, even as the jobless rate dropped to 4.2 percent. Lucas and Luna unpack why workers are leaving at a time when payrolls grew only 57,000 in June. They look at the divergence between the household and establishment surveys, what falling participation means for wage pressure, and how the Fed reads this data at 3.63 percent. Plus, why a tighter labor market with fewer workers doesn't necessarily mean higher inflation.
#LaborForceParticipation #FedPolicy #EmploymentData #USJobs #PayrollGrowth…
The skinny
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