Economics
U.S. Labor Market Is Tightest of Postwar Era, Goldman Gauge Shows
- Economists calculate 5.3 million gap between jobs, workers
- Indicator showcases difficulty for Fed achieving soft landing
This article is for subscribers only.
The U.S. jobs market is at its tightest since World War II, increasing the risks to the economy as Federal Reserve policy makers move to rein in inflation, according to Goldman Sachs Group Inc.
The Wall Street bank’s economists have compiled a gauge of U.S. labor that they say better tracks wage gains -- which are key to inflationary pressures -- than other measures. They add the total number of employees and the number of job openings to estimate labor demand. For supply, they count the labor force, or people in work and those looking for positions.