USMC - Chart Of The Week: The Softening Labor Market
2024-05-02 05:00:00 ET
Summary
- The latest JOLTS report showed the lowest levels of quits since early 2018 when Core PCE inflation was around 2%.
- This is an interesting data point because the quit rate has tended to be a good measure of labor market tightness.
- It’s often believed that the Fed can only bring down inflation by causing a rise in unemployment.
- Inflation is proving stickier than expected, but a few months of upside surprises is no reason to think we’re not headed in the right direction.
Wednesday’s Fed decision was largely unsurprising. But the most important data point of the day came long before the Fed decision. The latest JOLTS report showed the lowest levels of quits since early 2018 when Core PCE inflation was around 2%. This is an interesting data point because the quit rate has tended to be a good measure of labor market tightness....
Chart Of The Week: The Softening Labor Market