“Tight” Labor Markets Not Really All That Tight

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.


The Wall Street Journal passes along good news today:

Fed’s Beige Book: ‘Tight Labor Markets’ Are Pushing Up Wages

Tight labor markets are good. But how tight are they, really? The full Fed report is here. Here’s the super-abridged version of the twelve regional reports:

  • Boston: Labor demand was robust.
  • New York: The labor market has continued to tighten.
  • St. Louis: Wage growth was strong.
  • Philadelphia: Wage pressure was modest.
  • Richmond: Labor demand rose moderately.
  • Atlanta: Wage pressure was modest.
  • Chicago: Wage pressure picked up some.
  • Minneapolis: Wage pressure was moderate.
  • San Francisco: Wage inflation picked up somewhat.
  • Kansas City: Wages grew slightly.
  • Dallas: Wage pressures were minimal.
  • Cleveland: Payrolls were little changed on balance.

I score it like this: Three districts reported strong labor demand; six reported modest tightening; and three reported minimal change. There’s some good news here and there, and overall growth seems to be decent, but that’s about it. There’s certainly not the slightest suggestion that labor markets are truly tight, or in any danger of overheating. Nor is inflation is danger of overheating: it’s still piddling along at well under the target range of 2 percent. As former Fed governor Narayana Kocherlakota says, there’s simply nothing either here or in the official inflation figures to suggest that the Fed should do anything to put the brakes on the economy right now.

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. It's our first time asking for an outpouring of support since screams of FAKE NEWS and so much of what Trump stood for made everything we do so visceral. Like most newsrooms, we face incredibly hard budget realities, and it's unnerving needing to raise big money when traffic is down.

So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate