For Labor Day Prof. Brad DeLong posted a talk on the implications (or not) of the US being near “full employment.”
The arguments on a few of the pages will be familiar to readers of this blog:
My only significant quibble here is that “Job Openings” rates from both the JOLTS reports and the NFIB (Small Business) survey have been soaring for over 2 years. If employers knew that they had to pay higher wages to attract workers, but didn’t want to be locked in, why would they bother posting the job openings at all? That, to the contrary, they are posting job openings at record rates strongly suggests they *haven’t* learned yet that they must pay higher wages.