Payroll job growth in the United States has slowed over the past year, but the unemployment rate has remained largely unchanged. This trend has led policymakers to suggest that labor supply is also slowing.
A recent SF Fed Blog post by Leila Bengali, Ingrid Chen, Addie New-Schmidt, and Nicolas Petrosky-Nadeau examines labor market data and finds that growth in labor supply has indeed decelerated at a pace similar to payroll growth. The blog discusses how adjusting recent labor market figures reveals this parallel slowdown.
“The Federal Reserve Bank of San Francisco (SF Fed) works to advance the nation’s monetary, financial, and payment systems to build a stronger economy for all Americans. As part of the U.S. central bank, the SF Fed serves the Twelfth Federal Reserve District, which covers the nine western states—Alaska, Arizona, California, Hawai’i, Idaho, Nevada, Oregon, Utah, and Washington—plus American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. By pursuing our two key goals of maximum employment and price stability—known as the Fed’s dual mandate—we work toward supporting an economy that works for everyone,” according to a statement from The Federal Reserve Bank of San Francisco.
The findings contribute to ongoing discussions about employment trends and economic stability as policymakers continue to monitor shifts in both job creation and workforce participation across different regions served by the Federal Reserve Bank of San Francisco.
