Anatomy Of The US Labor Market

Last week’s employment report was widely interpreted as good because jobs growth rebounded and the unemployment rate dropped. Dr Ed and Elias disagree. Our inflation-adjusted Earned Income Proxy fell as inflation surged, a bad sign for real disposable income. The drop in the unemployment rate is good news, of course. Both labor supply and labor demand have contracted in recent months but remain roughly in balance. … Also noteworthy: Retiring Baby Boomers are weighing on real disposable income while simultaneously bolstering consumer spending. … And: Dr Ed reviews “Project Hail Mary” (+).