The Jobs Report in Light of what Powell Said: The Fed Cannot Create Supply of Labor, But it Can Slow the Demand for Labor

By Wolf Richter

2022.12.04

The data across the board, supported by countless industry reports, have all told a similar story: There is more demand for labor than there is supply of labor.

The layoffs in the tech and social media bubble are quickly getting absorbed by other companies, including in other industries, while the number of layoffs and discharges across all industries are near historic lows, and applications for unemployment insurance remain near historic lows. Wages have continued to surge; and for job hoppers, wages have exploded as desperate companies are willing to pay to fill slots, amid a gigantic pile of job openings and massive job hopping as workers are arbitraging the tighter labor market for their benefit.