Because the short-term unemployment rate has returned to its pre-recession average, one important implication—if the hypothesis that the long-term unemployed are largely on the margins of the labor market is correct—is that further declines in short-term unemployment would be expected to be associated with rising inflation and stronger real wage growth.
So has this trend continued to play out as expected over the past few months?
Chosen excerpts by Job Market Monitor. Read the whole story at Dow Jones Industrial Average, SPDR S&P 500 ETF Trust: Short-Term Unemployment Is Plummeting | ETF DAILY NEWS.
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