J2 - Demand and Supply of Labor

• The US Labour Market: How Much Slack Remains?

  Staff Analytical Note 2016-9 Robert Fay, James Ketcheson

  Despite the US unemployment rate being close to estimates of the non-accelerating-inflation rate of unemployment (NAIRU), measures of underemployment remain elevated, which could be an indication of remaining labour market slack. The shares of involuntary part-time workers and long-term unemployment are high relative to the current stage of the business cycle, suggesting available labour inputs are being underutilized.

  Content Type(s): Staff Research, Staff Analytical Notes Topic(s): International topics, Labour markets, Recent economic and financial developments JEL Code(s): E, E2, E24, J, J2, J21, J23