• Labor Slack and the Participation Rate

    25 days ago - By Calculated Risk

    Back in June, Politico obtained some responses to questions from Senators by recently confirmed Richard Clarida:
    Clarida, who has been nominated for Fed vice chairman, indicated that he believes there's more slack in the labor market. He noted that the labor force participation rate for prime-age workers, particularly men, has not gone back to pre-recession levels. “I also think this group could represent an additional margin of slack in the sense that some of them could be enticed to reenter the labor force as the demand for labor continues to strengthen,” he said. This is an interesting...
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