Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why the Labor Force Drop Is a Structural Crisis
Lucas and Luna dig into the latest labor force participation rate data, which fell to its lowest level in 50 years outside the Covid era. They explore why workers are leaving — from long Covid effects to early retirements and skill mismatches — and what it means for Fed policy, wage growth, and the economy's long-run capacity. With the unemployment rate ticking down to 4.2 percent but job openings rising, the picture is more complex than a simple 'tight labor market' story. They also discuss how this structural shift could keep inflation sticky even as growth slows, posing a…
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