Fed Says Labor Market Balanced, Points to Immigration Slowdown

A sharp stepdown in immigration has led the supply of workers to grow more slowly, helping to keep the labor market in balance as job growth cools, the Federal Reserve said Friday.

“Labor supply has increased less robustly than in previous years, with immigration appearing to have slowed sharply since the middle of last year and the labor force participation rate having declined a bit,” the Fed said in its semi-annual report to Congress on monetary policy, released on Friday.