Labor Market Stays Strong Post-Pandemic with Low Unemployment, Rising Wages
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The labor market recovered quickly from the 2020 pandemic recession, regaining all lost jobs within 2 years. It has stayed strong since with low unemployment and rising wages.
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Unemployment has stayed below 4% for 2 years, the longest such stretch since the 1960s, providing economic stability.
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Layoffs have been low, with the layoff rate often below 1% in 2023, lower than the pre-pandemic rate of 1.2%.
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Wage growth outpaced inflation starting in early 2023, delivering positive real wage growth for over 55% of workers.
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A tight labor market forced employers to compete for workers, allowing many to negotiate higher wages either through raises/promotions or by switching jobs.