The official jobless rate is so low the Fed thinks the economy is at full employment. But a gauge of the ‘functionally unemployed’ keeps climbing
"If this continues, it would suggest the labor market is losing strength despite what we may see in the headline unemployment numbers."
"If this continues, it would suggest the labor market is losing strength despite what we may see in the headline unemployment numbers."
BELLINGS Intelligence Score: 72
Why it matters
The divergence between the official low unemployment rate and a rising gauge of 'functionally unemployed' signals potential weakening in the labor market, which could materially shift Fed rate expectations and influence credit conditions.
Sources
Fortune
The official jobless rate is so low the Fed thinks the economy is at full employment. But a gauge of the ‘functionally unemployed’ keeps climbing
"If this continues, it would suggest the labor market is losing strength despite what we may see in the headline unemployment numbers."