Three Reasons We’re Not Yet at Full Employment

Jared Bernstein:

Three reasons we’re not yet at full employment: It is often asserted that the U.S. labor market, where unemployment has been at or below 5 percent since late 2015, has reached full employment. But I’ve got three reasons we’re not yet quite there yet:

— the underemployment employment rate is still too high;

— employment rates are still too low;

— wage pressures are still too mild.

I’ll explain each in turn...