About this work
Historically low US unemployment in early 2020 had not produced a clear acceleration in underlying inflation. Comparing labor force participation with other advanced economies, the analysis argues that substantial unused labor capacity might remain despite the low headline unemployment rate. That distinction matters for judging how close the economy is to its productive limits.
Abstract
Historically low US unemployment in early 2020 had not produced a clear acceleration in underlying inflation. Comparing labor force participation with other advanced economies, the analysis argues that substantial unused labor capacity might remain despite the low headline unemployment rate. That distinction matters for judging how close the economy is to its productive limits.
Cite this work
Jonathan Fortun, Robin Brooks (2020). GMV: How Much Labor Market Slack Remains?. Institute of International Finance.