Labor Shortage Is Vexing Challenge for U.S. Economy
Supply of available workers is headed in wrong direction as Federal Reserve strives to cool labor market and bring down high inflation
As anyone who has lost luggage or waited half an hour for a restaurant check can tell you, America needs way more workers in some parts of the economy.
Economists think so too. Many of them see the imbalance in labor supply and demand as at the heart of the U.S.’s current economic challenges. They say that fixing it is critical to achieving a so-called soft economic landing, in which the highest inflation in four decades comes down without unemployment rising enough to trigger a recession.