Is the Labour Market at a Crossroads?

It seems like ages since COVID infections were the most influential variable shaping the economic outlook. Monetary policy is now in the driver’s seat, and central bankers are acknowledging that it will be difficult to bring down inflation if wage pressures remain this elevated. But in the US, the August jobs report offered some encouraging signs, with the labour force growing by a net 786,000 workers during the month. The Beige Book for August released this week similarly noted some improvement in labour availability and retention.